Tinubu signs order to harmonise virtual asset regulation

President Tinubu has signed an Executive Order to coordinate the regulation of virtual assets in Nigeria, aiming to protect citizens from fraud and prevent money laundering.

President Tinubu signed an Executive Order on July 17 to coordinate the regulation of virtual assets in Nigeria. The directive aims to protect citizens’ savings from fraud, prevent money laundering, and safeguard the financial system’s integrity while enabling responsible innovation. By requiring financial and capital market agencies to collaborate, the government hopes to close regulatory gaps that unregistered operators have exploited, without introducing redundant layers of oversight.

The Executive Order represents a significant shift in the government’s approach to virtual assets. Previously, regulation was fragmented across multiple agencies, with the Central Bank of Nigeria and the Securities and Exchange Commission often at odds. The new framework is intended to provide clarity for investors and operators.

This echoes the 2021 banking sector reforms, which also sought to harmonise regulation across agencies. The mechanism was different then, but the result was the same: a government trying to catch up with technological change.

The winners: virtual asset operators, who gain regulatory clarity, and investors, who face reduced risk. The losers: unregistered operators, who face increased scrutiny, and the Nigerian public, who must navigate a new regulatory landscape.

Bottom Line: Tinubu has signed an order to regulate virtual assets. The aim is to protect citizens and prevent fraud. The question is whether the regulation will stifle innovation or enable it.