Nigerian Senate Advances Crypto Regulation Bill Amid Rising Adoption

The Nigerian Senate has advanced the Virtual Asset Service Providers Regulation Bill, 2026, aiming to establish a legal and regulatory framework for cryptocurrency operations in the country.

The proposed legislation seeks to create a comprehensive system for regulating virtual assets, digital assets, and Virtual Asset Service Providers (VASPs), introducing mandatory licensing, transparency, and compliance requirements for cryptocurrency exchanges operating in Nigeria.

Nigeria has one of the highest rates of cryptocurrency adoption in Africa, but lacks a clear regulatory framework. Senator Tahir Monguno noted that this absence exposes investors to significant risks and creates opportunities for criminal activities within the digital finance ecosystem.

The bill aims to protect investors, combat fraud, and unlock economic opportunities presented by the expanding digital asset sector. Lawmakers argued that failure to regulate the sector could push investments into unregulated channels, increasing risks for users and the broader financial system.