Nigeria’s tax regulatory body, the Federal Inland Revenue Service (FIRS), plans to seek the National Assembly’s support for a comprehensive new law to regulate cryptocurrency in the country.
According to local news, FIRS Executive Chairman Zacch Adedeji made this announcement during a recent stakeholder engagement session with the National Assembly’s Finance Committees. The proposed legislation, which FIRS aims to introduce in September, is part of a broader effort to overhaul Nigeria’s tax system.
According to Adedeji, the new bill will address the growing cryptocurrency industry, ensuring that its benefits are harnessed for Nigeria’s economy while mitigating potential risks. This regulatory push is a response to the rapidly expanding digital economy and the need for updated legal frameworks to keep pace with technological advancements.
Modernizing Nigeria’s tax system
Adedeji emphasized the importance of regulating cryptocurrencies, citing the necessity of a clear and comprehensive set of rules to protect the economy. He called for collaboration between the FIRS and lawmakers to draft and implement the proposed bill.
The new legislation will focus on cryptocurrencies and aim to simplify and modernize existing tax laws, some of which are outdated and no longer fit the needs of today’s digital world. This proposed tax system overhaul comes as the Nigerian government is increasingly recognizing the importance of digital assets.
On July 9, Nigerian Minister of Finance and Coordinating Minister of the Economy Wale Edun urged the newly inaugurated Securities and Exchange Commission (SEC) board to address the complexities surrounding cryptocurrency regulation.
SEC’s role in crypto regulation
The SEC has already taken steps to amend its rules on digital asset issuance, offering platforms, exchanges, and custody. These amendments are designed to enhance the regulatory framework, making it more responsive to the evolving digital asset markets.
The recent appointments to the SEC board, approved by Nigerian President Bola Tinubu on April 19, 2024, mark a new era in financial regulation.
The new board members, including Director-General Katuka, Executive Commissioner of Legal and Enforcement Emomotimi Agama, and Executive Commissioner of Operations Bola Ajomale, are expected to play a pivotal role in this regulatory transformation.
Meanwhile, the crypto community has also urged Nigeria's government and regulators to adopt responsible regulation of virtual assets rather than resorting to clampdowns to revitalize the market.
Magazine: Features Crypto regulation: Does SEC Chair Gary Gensler have the final say?
