Femi Gbajabiamila, the speaker of the Nigerian House of Representatives, has required a meaningful lawful framework for digital currencies in the country.
As reported by Nigerian news media Daily Post on July 23, Gbajabiamila believes the nation should foster clear guidelines and regulations for crypto assets so the nation doesn’t get behind as digital currencies becomes globally accepted.
Speaking at a visit by the leading body of the Nigerian Deposit Insurance Company (NDIC), Gbajabiamila said:
“On the issue of cryptocurrency, I think blockchain technology is novel and coming up strong. We don’t want to be left behind. ‘I think the world is taking the issue of cryptocurrency and block-chain technology seriously. ‘We don’t want to be left behind, and we have to take it seriously.”
Gbajabiamila noted the House’s readiness to develop relevant legal frameworks for the emerging technology and asset class.
In addition to blockchain and cryptocurrencies, the lawmaker also spoke about the role of the NDIC and creating well-defined and separate competencies between it and the country’s central bank. The speaker said that the House would expand the NDIC’s statutory functions, and ensure that its roles did not overlap with those of the Central Bank of Nigeria.
The NDIC, much like the American Federal Deposit Insurance Corporation, provides an insurance safety net for depositors in Nigeria’s recently liberalized banking sector. [irp]
Earlier this year, Nigeria’s financial watchdog agency, the Economic and Financial Crimes Commission (EFCC), received a petition alleging that Estonia-based crypto firm Paxful Inc. defrauded thousands of Nigerian investors out of millions of dollars worth of cryptocurrencies through arbitrary account closures.
Paxful subsequently denied the allegations, claiming that, “all accounts that have been shut down have a reason for it. We will not shut down any account unless they violate our TOS (Terms of Service).”