FIRS seeks legislative support to regulate crypto industry

The Federal Inland Revenue Service (FIRS) is seeking support from the National Assembly to enact a comprehensive law regulating the cryptocurrency industry in Nigeria.

The move comes as the government grapples with the challenges and opportunities presented by this rapidly growing digital asset.

FIRS Executive Chairman Zacch Adedeji made the announcement, on Saturday, at a stakeholders meeting with the Senate and House of Representatives Finance Committees.

He stressed the need for a legal framework to regulate the cryptocurrency market, ensuring its contribution to the country’s economic development while reducing potential risks.

Adedeji highlighted the FIRS’ plan to introduce a comprehensive bill that will overhaul the entire revenue administration process in Nigeria. The law aims to harmonise, re-codify and simplify existing tax laws, including those relating to the digital economy.

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He said, “The first plan is to have a law that regulates it, and that is why you see that we are here with the legislature, which will be the basis for the billing. And it is done in other places in the world when you have this innovation or system, so you just have to be prepared for it because you cannot leave it. So we just have to plan to regulate it in a way that it is not detrimental to the economic development of Nigeria.”

In his opening speech, Adedeji briefed the lawmakers on the draft law.

He told them, “Just to let you know, in September, we proposed a bill that will overhaul the entire revenue administration process in Nigeria, harmonising, recoding and simplifying the tax laws that we have. For example, in the Stamp Duty Act of 1939, when there was no internet connection, we needed to address that.

“Right now, we can’t run away from cryptocurrency, but as it stands, there is no law in Nigeria that regulates cryptocurrency. We can’t run away from it.”

FIRS recognizes the growing importance of cryptocurrencies and the need for a regulatory framework to address their unique characteristics. By establishing clear rules and guidelines, governments can encourage responsible innovation and protect investors.

The bill is expected to be tabled in the National Assembly in September. Its passage would mark a significant step towards establishing a regulatory environment for the cryptocurrency industry in Nigeria.

FIRS seeks legislative support to regulate crypto industry first appeared on Latest Nigeria News | Top Stories from Ripples Nigeria.