An Examination Of The Regulatory Framework For Digital Assets In Nigeria

Abstract

Modern economic expansion has been driven by technology which has promoted the viability of digital assets. This novel form of wealth holding; riding on evolving forms of virtual technology and artificial intelligence comes with a new wave of legal consequences. The approach by Nigerian regulatory institutions, namely the Securities and Exchange Commission and the Central Bank of Nigeria was first resistance; followed by restriction; and finally regulation. The inevitability of developing a decisive legal regime to equip stakeholders in digital and virtual investments and securities was immense; prompting the examination of the dynamics that have dictated the pace for regulation of digital assets in Nigeria. Utilising the doctrinal research method, the paper reviews the available legal framework on digital asset in Nigeria. The paper observes that digital asset transactions are poised to become a major market player in global economy, especially with improved technology. The paper finds that there appears to be extensive disjoints in the framework hitherto utilised which led to several anomalies and even fraud in the market. Assessing the adequacy of the relevant existing legal framework, the paper accentuates the necessity for better regulation by comparative lessons from other jurisdictions.