FIRS seeks legislative backing to regulate crypto industry

The Federal Inland Revenue Service (FIRS) is seeking the support of 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 evolving digital asset.

FIRS Executive Chairman Zacch Adedeji made the announcement, on Saturday, at a stakeholder engagement with the Senate and House Committee on Finance.

He emphasized the need for a legal framework to govern the cryptocurrency market, ensuring its contribution to the country’s economic development while mitigating potential risks.

Adedeji highlighted the FIRS’ plans to introduce a comprehensive bill that would overhaul the entire revenue administration process in Nigeria. This legislation aims to harmonize, recodify, and simplify existing tax laws, including those related to the digital economy.

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He said, “The plan first is to have the law that regulates it, and that is why you see that we are here with the legislature, which will be the base of charging. And that is done in any other place in the world when you have this innovation or system, so you just have to get ready for it because you can’t go away from it. So we just have to plan to regulate it in such a way that it is not injurious to the economic development of Nigeria.”

During his opening speech, Adedeji informed the lawmakers about the proposed bill.

He told them, “Just to put you on notice, by September, we are proposing a law that would overhaul the whole process of revenue administration 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 bring it up.

“Today, we cannot run away from cryptocurrency but as we stand today, there is no law anywhere in Nigeria that regulates cryptocurrency. We cannot run away from it.”

The FIRS recognizes the growing importance of cryptocurrency and the need for a regulatory framework to address its unique characteristics. By establishing clear rules and guidelines, the government can promote responsible innovation and protect investors.

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

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