Why We’re Regulating Cryptocurrency – FG

The Federal Government has said it recognized the potential of the crypto market and the empowerment it gives to citizens.

Naijaonpoint reports that the Minister of Information and National Orientation, Mohammed Idris, said President Bola Tinubu’s government’s move to regulate the crypto market was to protect the citizens from harm.

In an opinion piece he wrote on Wednesday, a link of which he shared on his 𝕏 handle, Idris stated that Nigeria has emerged as one of the most active and dynamic crypto markets in recent years.

He noted that young Nigerians have turned to cryptocurrencies to address fundamental economic challenges, from hedging against inflation to accessing global markets in a way traditional finance often does not allow.

“As minister of information, I have seen firsthand how digital innovation has become crucial to the Nigerian story. Cryptocurrencies, blockchain technology and other digital assets are no longer on the fringes of our economy; they are fast becoming central to how our people transact, create and build.

This rise in crypto adoption has not, however, come without challenges. Questions around regulation, “consumer protection, security and misuse of digital assets have fueled debates in Nigeria and globally. I write to clarify Nigeria’s position: We are committed to fostering an inclusive digital asset ecosystem that is both innovative and responsible,” he said.

Crypto Is Lifeline for Some Nigerians

While noting that Nigeria consistently ranks among the top countries in terms of crypto adoption, he stated that Crypto has become more than a speculative tool; but a lifeline for freelancers, small businesses and families receiving remittances.

“Yet despite the widespread use of cryptocurrencies, Nigeria has wrestled with how to regulate this sector effectively. Earlier approaches included restrictions on financial institutions from facilitating crypto transactions, which inadvertently pushed much of the activity underground, away from proper oversight.

“Under the administration of President Bola Ahmed Tinubu, Nigeria is reassessing its approach. We are moving away from blanket restrictions toward thoughtful, balanced regulation that acknowledges both the risks and the transformative potential of crypto and blockchain technologies.

“Our objective is to create a regulatory framework that fosters innovation, ensures market integrity and protects Nigerian consumers. This involves active engagement with stakeholders from crypto startups and blockchain developers to international partners and regulatory bodies,” he stated.

The Need for Regulation

The Minister of Information explained that the government was determined to address concerns around fraud, money laundering, terrorism financing and other illicit activities.

Idris stated that effective regulation, rather than prohibition, is the path forward.

He continued, “Nigeria sees blockchain technology as more than just crypto trading. Blockchain can be a powerful governance, transparency and service delivery tool.

“Nigeria is not navigating this journey alone. As we develop new policies and frameworks, we look to global best practices and seek collaboration with international platforms and regulators.

“We invite crypto companies, investors, innovators and advocates to engage with us. We aim to create a transparent and predictable environment where businesses can thrive while ensuring Nigerian citizens are protected from undue risks.

“Nigeria’s approach to crypto is evolving, and with good reason. The potential for digital assets and blockchain to contribute to economic growth, job creation and financial empowerment is too significant to ignore.

“To realize these benefits, we must build trust in the system through effective regulation, education and international cooperation.

“To the global crypto community, I say this: Nigeria is open to innovation, but we are equally committed to ensuring that such innovation operates within a secure, transparent and inclusive framework.

“We look forward to working together — for the benefit of Nigerians and the global advancement of responsible crypto adoption.”

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