Nigeria’s president signs law classifying crypto as securities: report

The president of Nigeria, Bola Tinubu, signed a new law strengthening the surveillance of the dry of cryptocurrencies and classified them as titles.

NigeriaThe president of Bola Ahmed Tinubu signed the 2024 law on investments and securities, classifying cryptocurrencies as securities Under the regulatory authority of the Nigerian Commission for Securities and Exchange, local media report.

The new law replaces the law of ISA 2007 and would have widened the role of the SEC in the supervision of the capital markets of Nigeri, including the exchanges of crypto. The law also applies stricter penalties for Ponzi regimes, which are generally linked to the cryptography market.

For example, people recognized as guilty of having directed Ponzi diets could incur a prison sentence of 10 years or more, as well as a minimum fine of 10 million nairas (about $ 6,500). Total financial sanctions could reach 40 million nairas (around $ 26,000), depending on the severity of the offense.

Nigeria’s informed population has turned to cryptocurrencies to protect themselves from high inflation and the sharp drop in Naira against the dollar since mid-2023. According to data From the channel channel, the country has received around 59 billion dollars of cryptocurrency value between July 2023 and June 2024.

Since his entry into office in 2023, President Bola Tinubu has focused on tax reforms aimed at increasing government revenues and reducing the budget deficit, including the administration of renovation taxes. Pressure for regulations puts Nigeria in accordance with other regions such as the European Union with its cryptocurrency markets, which have all decided to regulate cryptocurrencies.