The Senate has taken a significant step toward regulating Nigeria’s fast-growing cryptocurrency and digital asset sector by passing the Virtual Asset Service Providers (VASP) Regulation Bill, 2026 for second reading.
The proposed legislation seeks to establish a comprehensive legal and regulatory framework for virtual assets, digital assets, and cryptocurrency service providers, while introducing mandatory licensing, transparency, and compliance requirements for operators.
Sponsored by Deputy Senate President Jibrin Barau, the bill is aimed at protecting investors, combating fraud, curbing illicit financial activities, and unlocking the economic potential of the digital asset ecosystem.
Presenting the bill on behalf of the sponsor, Senator Tahir Monguno noted that despite being one of Africa’s leading cryptocurrency markets, Nigeria still lacks a clear legal framework to govern the sector.
According to him, the absence of effective regulation has exposed investors to significant risks and created opportunities for criminal activities, including fraud and money laundering.
During the debate, several senators described digital assets as an integral part of the modern global economy and stressed the need for Nigeria to provide a structured regulatory environment.
They argued that proper regulation would protect millions of Nigerians, especially young entrepreneurs, traders, and technology innovators who rely on cryptocurrencies and blockchain-based businesses for income and employment.
Barau said Nigeria’s position as one of the world’s leading adopters of virtual assets brings both opportunities and responsibilities.
He warned that allowing the sector to operate without adequate oversight could encourage black-market transactions, facilitate financial crimes, and limit its contribution to the Federal Government’s ambition of building a $1 trillion economy.
According to him, the bill is not designed to stifle innovation but to provide clarity, accountability, transparency, and consumer protection for participants in the ecosystem.
The proposed legislation is also expected to bring Nigeria’s regulatory framework in line with international standards set by organisations such as the Financial Action Task Force (FATF) and the International Monetary Fund.
Speaking in support of the bill, Senator Natasha Akpoti-Uduaghan lamented the challenges faced by Nigerian technology entrepreneurs due to regulatory uncertainty.
She argued that many innovators are relocating their businesses abroad because global technology companies are often reluctant to operate in jurisdictions without clear rules governing emerging technologies.
According to her, Nigeria risks losing billions of dollars in investments and thousands of jobs if it fails to create a supportive legal framework for digital innovation.
Similarly, Senator Adams Oshiomhole urged lawmakers to expedite the bill’s passage, describing regulation as both necessary and overdue.
However, Senator Adetokunbo Abiru advised that the proposed law should be harmonised with existing financial regulations, including the Investments and Securities Act and the Banks and Other Financial Institutions Act (BOFIA), to avoid regulatory conflicts.
