The Senate has passed the Virtual Asset Service Providers Regulation Bill, 2026 for second reading as part of efforts to establish a legal and regulatory framework for cryptocurrency and digital asset operations in Nigeria.
The proposed legislation seeks to create a comprehensive system for regulating virtual assets, digital assets and Virtual Asset Service Providers (VASPs), while introducing mandatory licensing, transparency and compliance requirements for cryptocurrency exchanges operating in the country.
Lawmakers said the bill would help protect investors, combat fraud and other illicit activities, and unlock the economic opportunities presented by the rapidly expanding digital asset sector.
The bill, sponsored by the Deputy Senate President, Sen. Barau Jibrin, was presented during plenary on Tuesday by Senator Tahir Monguno, who led the debate on behalf of the sponsor.
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Speaking on the bill, Monguno noted that despite Nigeria recording one of the highest rates of cryptocurrency adoption in Africa, the country has lagged behind several peers in developing a clear regulatory framework for the sector.
He warned that the absence of effective regulation has exposed investors to significant risks and created opportunities for criminal activities to flourish within the digital finance ecosystem.
Several lawmakers who contributed to the debate expressed support for the measure, describing virtual assets as an increasingly important component of the global economy. They argued that failure to regulate the sector could push investments and business activities into unregulated channels, increasing risks for users and the broader financial system.
Lawmakers further asserted that a robust regulatory framework would provide protection for millions of Nigerians, particularly young entrepreneurs and traders who rely on cryptocurrency and related technologies as a source of income and employment.
Barau also noted that Nigeria’s position as a leading adopter of virtual assets presents both opportunities and regulatory challenges, cautioning that allowing the sector to operate without oversight could encourage black-market transactions, facilitate criminal activities and limit its contribution to the Federal Government’s ambition of building a $1 trillion economy.
The proposed legislation is also expected to bring Nigeria’s regulatory framework in line with international standards set by the Financial Action Task Force and the International Monetary Fund.
