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October 31, 2025

The Path to Clarity—Proposing a Unified Virtual Asset Service Act (VASA) for Responsible Innovation and Adoption in Nigeria

The Path to Clarity—Proposing a Unified Virtual Asset Service Act (VASA) for Responsible Innovation and Adoption in Nigeria_VASPA_House of Representatives
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Abuja FCT, Nigeria — On October 30, 2025, the Virtual Asset Service Providers Association (VASPA) presented an expert working paper, titled “The Path to Clarity—Proposing a Unified Virtual Asset Service Act (VASA) for Responsible Innovation and Adoption in Nigeria” to the House of Representatives’ Ad Hoc Committee on the Economic, Regulatory and Security Implications of Cryptocurrency Adoption and POS Operations in Nigeria.

Executive Summary: The Case for a Unified Virtual Asset Service Act (VASA)

1. Introduction and Statement of Commitment

 
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.
 

1.2. Primary Proposal and Key Recommendations (Summary)

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:
 

Downloadable Copy

To read the rest of this working paper, click here to download the copy submitted to the Chairman of the Ad Hoc Committee. 

Support Advocacy

VASPA welcomes support from stakeholders and partners who share common goals with us regarding any of our advocacy projects. For enquiries on how you can support this project or any of our other ongoing or proposed projects, please reach out to the Secretariat via secretariat@vaspa.org.

About VASPA

The Virtual Asset Service Providers Association (VASPA) is a Pan-African industry body registered as an Incorporated Trustee with the Corporate Affairs Commission in Nigeria (CAC IT: 79069970) where it is headquartered. VASPA comprises individual, corporate, and institutional members from across Africa. For more information about us, please visit our website, www.vaspa.org. To become a Patron or Partner of VASPA, visit our Membership page: https://vaspa.org/become-a-member/. Individual and corporate members are also welcomed.

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The NRS VASP Tax Compliance Gateway (VASP TCG) Registration is Now Open

The Nigeria Revenue Service (NRS) has officially commenced the operationalization of the Nigeria Tax Administration Act, 2025 (NTAA) concerning digital assets. As part of this rollout, the NRS has launched the VASP Tax Compliance Gateway (VASP TCG). This portal serves as the official infrastructure for all Virtual Asset Service Providers (VASPs) to register and report relevant virtual asset transactions. Under Section 25 and the Fifth Schedule of the NTAA, and guided by the July 2026 NRS Guidelines on the Taxation of Virtual Assets, registration on the VASP TCG is a mandatory compliance requirement for all operators. Notably, this new system is designed to allow for applicable taxes to be collected and remitted directly in tokens. In collaboration with the NRS, the Virtual Asset Service Providers Association (VASPA) is mobilizing both our fully onboarded members and the broader ecosystem to begin this registration process. Participating in this framework is a critical step in standardizing virtual asset operations, validating the legitimacy of the digital asset sector to statutory regulators, and sustaining the growth of our digital economy. Resources & Next Steps To ensure a smooth onboarding process for the entire ecosystem, the NRS has provided the following resources (links below): Virtual Asset Compliance Program Overview;NRS...

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Founded in 2024, the Virtual Asset Service Providers Association (VASPA) is a Pan-African industry body registered as an Incorporated Trustee with the Corporate Affairs Commission in Nigeria (CAC IT: 79069970), comprising individual, corporate, and institutional members from across Africa. Join us to shape the future of virtual asset in Africa.

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