What is Nigeria's new crypto licensing bill?

The Virtual Asset Service Providers Regulation Bill, 2026, is proposed legislation that would establish a formal regulatory framework for cryptocurrency exchanges and digital asset service providers in Nigeria. The bill has passed its second reading in the Senate and now moves to committee review.

Why is Nigeria introducing crypto regulation now?

Lawmakers argue that a lack of clear rules has left a significant portion of crypto activity outside official oversight. The bill aims to improve transparency, reduce fraud and create a more structured environment for digital asset businesses.

What would crypto exchanges need to do under the bill?

Crypto exchanges and other virtual asset service providers would be required to obtain licences and comply with regulatory standards. They would also need to follow consumer protection, reporting and operational requirements if the bill becomes law.

How could the bill affect crypto users in Nigeria?

The proposed rules are designed to improve consumer protection and market accountability. While users may benefit from stronger safeguards, exchanges could face additional compliance obligations that may affect how services are delivered.

Does the bill ban cryptocurrency in Nigeria?

No. The legislation is focused on regulation rather than prohibition. Supporters say the goal is to create legal clarity and oversight while allowing innovation and digital asset activity to continue.

What international standards does the bill follow?

The proposal seeks to align Nigeria's crypto framework with anti-money laundering (AML) and counter-terrorism financing standards associated with organisations such as the Financial Action Task Force (FATF) and the International Monetary Fund (IMF).

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Nigeria Senate advances crypto licensing bill

Written by Heidi Cuthbert Published Jun 11, 2026, 7:16 AM

Nigeria's Senate has advanced legislation that would establish a formal regulatory framework for cryptocurrency exchanges and virtual asset service providers operating in one of the world's most active crypto markets.

The Virtual Asset Service Providers Regulation Bill, 2026, passed its second reading on Tuesday and was referred to the Senate Committee on Capital Market for further review and possible amendments.

The proposal would require crypto exchanges and other virtual asset service providers to obtain licences and comply with transparency, consumer protection and operational standards designed to improve oversight of the sector.

Lawmakers said the bill would help address regulatory gaps by bringing digital asset activities under a clearer supervisory framework while reducing fraud and improving market accountability.

The legislation also seeks to align Nigeria's crypto regulations with international standards linked to anti-money laundering and counter-terrorism financing requirements promoted by global organisations.

Senate Chief Whip Mohammed Monguno said the bill is intended to create order, confidence and consumer protection rather than restrict innovation, while supporters noted that countries including Kenya, South Africa and Ghana are pursuing similar frameworks.

Nigeria remains one of the world's largest cryptocurrency markets, with digital assets widely used for remittances, cross-border payments, inflation hedging and access to international financial services.

If approved, the legislation would increase compliance obligations for exchanges and digital asset operators, although supporters argue that clearer rules could attract investment and support President Bola Tinubu's goal of expanding the country's digital economy.