Nigeria’s Tax Authority Proposes Comprehensive Crypto Bill

Key takeaways:

• The FIRS is asking the National Assembly to approve a completely new law governing crypto in the nation. 
• 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.

The Federal Inland Revenue Service (FIRS), Nigeria’s tax body, is asking the National Assembly to approve a new law governing crypto in the nation. 

Local press reports state that the statement was made by FIRS Executive Chairman Zacch Adedeji during a recent stakeholder engagement meeting with the Finance Committees of the National Assembly. FIRS plans to introduce the new law in September as part of a larger initiative to restructure Nigeria’s tax structure. 

Adedeji claims that the new bill will deal with the expanding crypto market, maximizing its advantages for the Nigerian economy while minimizing any possible 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.

Adedeji underlined the significance of regulating crypto, pointing out that an extensive and unambiguous set of regulations is required to safeguard the economy. In order to create and execute the proposed laws, he urged for cooperation between the FIRS and MPs. 

With an emphasis on crypto, the new legislation seeks to streamline and update current tax laws—some of which are antiquated and unsuited to the demands of the modern digital world. The Nigerian government is beginning to understand the significance of digital assets, which is why this planned change in the tax system is being made. 

Wale Edun, the Coordinating Minister of the Economy and Minister of Finance of Nigeria, encouraged the newly appointed Securities and Exchange Commission board to address the challenges associated with regulating crypto on July 9. 

The SEC has already started to modify its regulations regarding issuing digital assets and offering platforms, exchanges, and custody. The purpose of these revisions is to improve the regulatory framework and increase its adaptability to the changing dynamics of the digital asset markets.

Bola Tinubu, the president of Nigeria, accepted the recent selections to the SEC board on April 19, 2024, and they may usher in a new era of financial regulation in the nation. 

Going forward, the new board members are anticipated to be crucial to the regulatory transition process.

Meanwhile, instead of using crackdowns, the crypto industry has urged the Nigerian government and regulators to embrace responsible regulation of digital assets.