Senate has opened discussions with the stakeholders in the Blockchain Association of Nigeria (SIBAN) on creating a legal framework to regulate cryptocurrency and blockchain activities in the country, amid rising adoption and global shifts in digital finance.

The engagement took place yesterday during an interactive session between the Senate Committee on Capital Market, chaired by Senator Osita Izunaso, and SIBAN executives led by President Obinna Iwuno.

Iwuono underscored the urgency for regulation, noting that Nigeria ranks second in the world and first in Africa for cryptocurrency adoption, with blockchain transactions valued at more than $59 billion. “We cannot afford to take the back seat after ranking second globally in crypto adoption,” he said, stressing that a clear regulatory structure would unlock massive economic potential.

He pointed out that while SIBAN operated as a self-regulatory body, it works closely with the Securities and Exchange Commission (SEC) and the Nigerian Financial Intelligence Unit (NFIU) to promote compliance and safeguard the digital asset space.

Citing recent legislation in the United States to strengthen the role of the dollar in digital finance, Iwuono urged Nigerian lawmakers to act quickly.

“The new global financial system is taking shape, and Nigeria must position itself to benefit,” he said.

In his remarks, Izunaso commended SIBAN’s advocacy and aligned the committee’s priorities with the group’s proposals, including investor protection, tokenisation, blockchain-driven innovation, and supportive policy frameworks.

Other lawmakers, including Senators Victor Umeh (Anambra Central), Jibrin Isa (Kogi East), and Mustapha Khabeeb (Jigawa South-West), echoed calls for enabling legislation that would not only recognise crypto operators, but also expand Nigeria’s capital market offerings.

The collaboration between the Senate and blockchain stakeholders marks a significant step towards resolving the policy vacuum that has hindered investment in Nigeria’s thriving digital asset space.

Observers say a legal framework could balance innovation with investor protection, positioning the country as a leader in Africa’s digital economy.