Nigeria’s Senate Seeks to Regulate Crypto Market, Collaborates With SIBAN on Legal Framework

In a decisive move to strengthen Nigeria’s position as a global leader in cryptocurrency adoption, the Senate has initiated collaboration with the Stakeholders in Blockchain Association of Nigeria (SIBAN) to establish a legal framework for digital assets and blockchain operations in the country.

The partnership was unveiled on Thursday during an interactive session between the Senate Committee on Capital Market, chaired by Senator Osita Izunaso, and a delegation from SIBAN led by its President, Mr. Obinna Iwuno.

In his submission, Iwuno emphasised Nigeria’s strategic position in the global digital economy, noting that the country currently ranks second worldwide and first in Africa in cryptocurrency adoption.

He said, “From the latest Chainalysis data, transactions conducted via blockchain in Nigeria amounted to a staggering $59 billion.

“This is only a glimpse of what we can achieve with the right legal structure, policy support, and regulatory clarity,” Iwuno said.

He stressed the urgent need for a clear regulatory framework, drawing attention to recent developments in the United States where President Donald Trump signed the “Genius Act” into law, enabling the use of USD-backed stablecoins.

He noted that such moves are part of efforts to preserve the dollar’s dominance in the evolving global financial landscape.

Iwuno said, “Nigeria must not be left behind. “We are already a continental leader, contributing over 60 percent of Africa’s blockchain adoption. A robust legal framework will position us for even greater impact.”

Currently operating as a self-regulatory organisation, SIBAN collaborates with key government institutions such as the Securities and Exchange Commission (SEC) and the Nigerian Financial Intelligence Unit (NFIU) to promote responsible innovation and investor protection in the digital asset space.

Chairman of the Senate Capital Market Panel, Senator Izunaso lauded SIBAN’s advocacy for a safe and innovative digital economy.

He assured stakeholders of the Senate’s commitment to supporting policies that enhance Nigeria’s capital market and digital asset ecosystem.

Izunaso said, “We appreciate your dedication to building a secure and dynamic digital economy.

“Your focus on blockchain utilization, investor protection, and capacity building aligns closely with our committee’s priorities,” he added.

Other lawmakers, including Senators Victor Umeh (Anambra Central), Jibrin Isa (Kogi East), and Mustapha Khabeeb (Jigawa South West), expressed strong support for enabling legislation that would legitimize and guide cryptocurrency activities in Nigeria.

The meeting marks a significant step towards integrating blockchain technology into Nigeria’s regulatory framework and economic planning, positioning the country as a leader in the fast-evolving global digital finance ecosystem.

Source: Arise