Key Takeaways:
- Nigeria likely to propose a law legalizing Bitcoin and other cryptos.
- Meanwhile, US Senate banking chair mulls plans to ban crypto.
PATNA (CoinChapter.com) — On Dec 19, the cryptocurrency market awoke to two news extremes on the wire. While Nigeria announced a proposal to legalize Bitcoin and its compatriots by passing a bill, US Senate Banking Committee chairman Sherrod Brown suggested a ban on the cryptocurrency markets.
The conflicting news reports come as the crypto sector staggered against a still hawkish Federal Reserve’s decision to continue rate hikes. As a result, Bitcoin’s (BTC) price broke below $17,000 while Ethereum (ETH) dropped below $1,200.
Nigeria Seeking Amendment To Legalize Cryptocurrencies
Despite the bear market, it seems cryptocurrency adoption might be moving up. Per a report by the Nigerian news agency Punch Newspapers, the African nation plans to recognize the use of Bitcoin and other cryptos so that Nigeria can “low with global economic innovations.”
The newspaper cited an interview with the House of Representatives Committee on Capital Markets and Institutions Babangida Ibrahim. Ibrahim stated that once the proposed bill is signed into law, the Nigerian SEC would recognize Bitcoin and other digital assets as “capital for investment.“
Ibrahim insisted that the decision would help the economy stay updated with global practices. Moreover, the Representatives Committee head emphasized the need for an “efficient and vibrant capital market in Nigeria.”
The official also noted the impact of the crypto ban by the Central Bank of Nigeria (CBN) in Feb 2021 was negligible. However, in detail, the central bank had ordered banks in the country to close the accounts of individuals or entities engaged in crypto trade or operating crypto exchanges.
The apex bank made crypto payments and trade illegal in the region. However, crypto adoption in the region remained unaffected. Nigeria left other countries like the US far behind in terms of google searches of Bitcoin and other cryptocurrency-themed keywords.
The Law Not About Lifting The Ban – Babangida Ibrahim
However, Ibrahim emphasized the upcoming law does not lift the ban. Instead, the Nigerian official noted that users could interact with digital currencies from anywhere. “You can stay here in Nigeria and invest in the United States, Canada, or anywhere,” he stated, adding,
It is not about lifting of the ban, we are looking at the legality: what is legal and what is within the framework of our operations in Nigeria.
As a result, such transactions fall outside the purview of the Central Bank of Nigeria. During its initial ban, the CBN discovered most investors did not use local accounts for crypto transactions.
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The new law would help establish regulations for the crypto sector and help define the Central Bank of Nigeria and the Securities Exchange Commission’s regulatory responsibilities regarding cryptocurrencies.
US Senate Chair — Maybe Ban Cryptocurrency?
US Senator Sherrod Brown suggested that federal watchdog agencies might need to ban cryptocurrencies in the US. Brown, the chairman of the Senate Banking, Housing, and Urban Affairs Committee, commented on a Dec 18 appearance on NBC’s “Meet the Press.”
The Democratic representative from Ohio told host Chuck Todd that cryptos pose a threat to national security, as cryptos are used by drug traffickers, human trafficking, and terror financing, apart from being a “Ponzi scheme.”
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Brown stated that the treasury, Securities Exchange Commission (SEC), and the Commodity Futures Trading Commission (CFTC) should cooperate and consider a ban on cryptocurrencies. The Senator stated that he has been “educating” the public on the dangers of cryptocurrencies over the past 1.5 years.
Brown used FTX’s recent collapse as a reason behind the validity of a crypto ban. However, the Ohio representative stated that a ban would be difficult to implement, stating, “banning it is very difficult because it will go offshore and who knows how that will work.”
