Nigerian Senate Passes Bill to Regulate Cryptocurrency

The Nigerian Senate has passed a bill to regulate cryptocurrency and virtual assets in the country. The proposed legislation, titled the Virtual Asset Service Providers Regulation Bill, 2026 (SB 956), aims to establish a comprehensive legal and regulatory framework for virtual asset service providers operating in Nigeria.

The bill was sponsored by Deputy Senate President Barau Jibrin and presented on the floor by Chief Whip Mohammed Tahir Monguno. Monguno noted that Nigeria ranks among the top global users of virtual assets, but regulation has not kept pace with rapid technological adoption, creating risks in the financial system.

Monguno emphasized that the bill seeks to introduce transparency, accountability, and oversight without stifling innovation, adding that it would require virtual asset service providers to be licensed and regulated. The framework would also strengthen Nigeria's compliance with global standards set by the Financial Action Task Force (FATF) and the International Monetary Fund (IMF), particularly in combating money laundering and terrorism financing.

Lawmakers from both sides of the aisle expressed their support for the bill, citing Nigeria's potential to become a leader in fintech innovation. Senator Shuaib Afolabi Salisu warned that weak regulation could drive the sector underground and encourage illicit activities, while Senator Natasha Akpoti-Uduaghan noted that clearer rules would help unlock jobs and innovation.