*The Nigerian Senators pass the Virtual Asset Service Providers Regulation Bill, 2026 for second reading, in move to protect investors, curb fraud and criminal activities, and unlock the potential of the rapidly growing virtual assets sector of the country’s emerging digital economy
Isola Moses | ConsumerConnect
The Nigerian Senate Tuesday, June 9, 2026, passed the Virtual Asset Service Providers Regulation Bill, 2026 for second reading.
ConsumerConnect reports the Federal lawmakers’ move in this direction is regarded as a major step towards establishing a legal framework for cryptocurrency and digital asset operations in the country.
OAU: Minister inaugurates hi-tech hub, inspires students to turn ideas into solutions
The Senators also affirmed that the proposed virtual assets legislation would protect investors, curb fraud and criminal activities, and unlock the economic potential of the rapidly growing digital asset sector in Nigeria.
It is noted that when passed into law, the proposed legislation is expected to place Nigeria among African countries, including Kenya, South Africa and Ghana that have adopted formal regulatory frameworks for cryptocurrency and digital asset transactions.
The new law also will empower regulators to license operators, combat fraud, money laundering and terrorism financing in the Nigeria Digital Economy.
It is recalled that Senator Jibrin Barau, Deputy Senate President, had sponsored the legislative bill seeking to establish a comprehensive regulatory and supervisory framework for virtual assets, digital assets and Virtual Asset Service Providers (VASPs).
It is equally intended to make licensing, transparency and compliance mandatory for cryptocurrency exchanges operating in the West African country.
Leading debate on the bill, Senator Tahir Monguno, who presented it on behalf of Senator Barau, also noted that Nigeria has remained behind several African countries in regulating the digital finance ecosystem.
Still, the country has recorded one of the highest rates of cryptocurrency adoption on the African continent, according to reports.
Monguno contended that the absence of a clear legal framework for cryptocurrency and other virtual assets has exposed several investors to risks while allowing illicit activities to thrive in the sector.
The legislators, who spoke in support of the regulatory measure described virtual assets as an inevitable feature of the modern global economy.
They, however, warned that continued regulatory gaps could drive investments and business activities into unregulated channels.
The Federal lawmakers further argued that effective regulation would protect millions of Nigerian digital consumers, particularly young entrepreneurs and traders, who depend on cryptocurrency and related technologies for employment and income.
Senator Barau said Nigeria’s leadership in virtual asset adoption has come with significant regulatory challenges in the ecosystem.
Lawmakers on dangers of virtual assets market without regulation
Emphasising the inherent dangers of any market without regulation, Senator Barau also highlighted dangers of allowing the sector to operate without oversight.
According to him, unregulated activities could encourage black-market transactions, facilitate criminal conduct and limit the sector’s contribution to the Federal Government’s target of building a $1 trillion economy.
The Deputy Senate President, therefore, stressed that the bill was designed to provide clarity and confidence for operators and investors rather than stifle innovation.
The proposed law, he stated, seeks to establish order, accountability, consumer protection and transparency within the ecosystem.
The legislation is also expected to align Nigeria’s regulatory framework with international standards prescribed by the Financial Action Task Force (FATF) and the International Monetary Fund (IMF).
In her contribution to the debate in the Upper Legislative House, Senator Natasha Akpoti-Uduaghan highlighted the impact of inadequate regulation on Nigeria’s technology industry.
Senator Akpoti-Uduaghan lamenting that several young innovators are being forced to operate their businesses overseas due to limited market regulation.
According to her, billions of Dollars in potential investments and job opportunities could be lost if Nigeria fails to create the necessary legal framework for emerging digital industries.
Supporting the bill, Senator Adams Oshiomhole from Edo State stressed the need for regulation was self-evident, urging his colleagues in the Senate to expedite its passage.
Again, Senator Barau said the upcoming legislation would help to protect investors and other participants in the virtual asset ecosystem while ensuring that innovation contributes positively to national development.
He stated that clear legal framework would provide safeguards against exploitation and promote confidence among investors and operators.
After Tuesday’s deliberations, the Senate then, referred the bill to its Committee on Capital Market for further legislative scrutiny, with a mandate to submit its report within four weeks.