The Virtual Asset Service Providers Association (VASPA) welcomes the initiative of the Ad Hoc Committee on the Economic, Regulatory and Security Implications of Cryptocurrency Adoption and POS Operations in Nigeria (the Ad Hoc Committee) to address the critical economic, regulatory, and security implications of digital finance in Nigeria. Our nation’s position as a global leader in cryptocurrency adoption, with reportedly over 22 million users, necessitates a legislative framework that is comprehensive, coherent, investor-friendly, and fit for purpose. This high rate of adoption is a pragmatic response to persistent macroeconomic factors in conventional financial services.

VASPA’s commitment to full regulatory compliance is total and revealing. We posit that the current, fragmented regulatory approach—a patchwork of legislation, rules, and circulars—has not achieved the necessary level of clarity, certainty, efficiency, and effectiveness to drive responsible innovation in Nigeria.

 

This paper formally proposes the enactment of a Virtual Asset Service Act (VASA). This single, overarching statute must replace the current fragmented system to create a definitive, clear, and stable legal foundation for the emerging virtual asset sector.

 

Crucially, the VASA framework is designed to succeed without the creation of a new, independent regulatory body. Instead, it will codify the non-overlapping mandates of existing agencies—the Securities and Exchange Commission (SEC), the Central Bank of Nigeria (CBN), and the Nigerian Financial Intelligence Unit

(NFIU)—within one coherent law.

 

Key findings and corresponding recommendations include: