Nigeria Senate Advances Crypto Regulation Bill for Second Reading.
Nigeria’s Senate advanced the Virtual Asset Service Providers Regulation Bill, 2026, to second reading on 8th June, 2026.
The senate intents to impose a mandatory licensing and compliance requirements on cryptocurrency exchanges operating in the country.
The bill, sponsored by Deputy Senate President Jibrin Barau, seeks to establish a legal, regulatory and supervisory framework for virtual assets and digital assets. It intends to cover the Virtual Asset Service Providers in Nigeria as well.
The Need for Virtual Assets Regulation Law In Nigeria!
Senate Whip Tahir Monguno, who presented the bill on behalf of Barau during plenary in Abuja, identified unregulated crypto activity as a direct enabler of financial crime.
“Yet, while innovation has surged, regulation has lagged behind. This has created loopholes that allow misuse, fraud, and financial crimes to flourish. Loopholes that expose honest citizens to loss and exploitation. And loopholes that threaten the stability of our financial system.” Monguno said.
Barau, summing up the debate, said the bill would provide legal protection for millions of Nigerians. In particular, young entrepreneurs and traders, who rely on cryptocurrency as a source of income.
What Does The Bill Propose?
The proposed law requires cryptocurrency exchanges, blockchain-based investment platforms, and other virtual asset service providers to obtain licences and comply with regulatory standards to protect consumers and the financial system.
Barau said the bill should not be seen as a limiter or a discourager of innovation or investing. He said, “The intent of this Bill is simple: to bring order, confidence, and accountability into the virtual asset ecosystem. It does not seek to stifle innovation or punish creativity. On the contrary, it aims to create a fair and predictable environment where innovation can thrive under clear rules and responsible oversight.”
Senator Adetokunbo Abiru urged the Senate to harmonise the proposed legislation with existing financial laws, including the Investments and Securities Act and BOFIA.
“If we regulate crypto in isolation, we risk creating confusion. We need a coordinated framework for the entire digital finance industry,” Abiru said.
The Senate then referred the bill to the Committee on Capital Market for further review, with the committee expected to report back within four weeks. The bill is also expected to align Nigeria’s regulatory framework with international standards set by the Financial Action Task Force and the International Monetary Fund.
Nigeria is not the only African country to try and pass a law that will see regulation and government involvement in virtual assets, as Kenya, and South Africa are also working towards the same goal.
What Will a Controlled Digital Assets Economy Do to African Countries?
A controlled digital assets economy will fundamentally reshape African countries by drastically lowering cross-border payment costs, deepening financial inclusion, and strengthening regulatory oversight over billions of dollars in active on-chain flows.
