Nigeria Senate advances crypto regulation bill

Nigeria's Senate has advanced legislation to establish a comprehensive regulatory framework for virtual assets and cryptocurrency, aiming to bring a rapidly growing but largely unregulated sector under formal oversight. The Virtual Asset Service Providers Regulation Bill, 2026, sponsored by Deputy Senate President Jibrin Barau, passed its second reading during a plenary session on Tuesday, June 9, 2026, with unanimous support from lawmakers.

The proposed law seeks to regulate virtual assets, digital assets, and Virtual Asset Service Providers (VASPs) operating in Nigeria. It would mandate licensing, transparency, and compliance requirements for cryptocurrency exchanges and other operators. Senator Tahir Monguno, who presented the bill on behalf of Barau, argued that Nigeria is already a leading user of virtual assets globally but lacks a proper legal structure for the sector. He stated that regulation has lagged behind innovation, creating a gap this bill intends to close to protect the public and the financial system.

Lawmakers warned that the absence of regulation is driving investments, jobs, and government revenue into unregulated channels and exposing the country to...