FIRS Head Urges Legal Framework for Crypto Amid Binance Exit Controversy

FIRS Executive Chairman, Zacch Adedeji, Advocates for Legislative Support to Regulate the Crypto Industry

The Executive Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, has announced that the agency will be seeking the support of the National Assembly to enact comprehensive legislation aimed at regulating the cryptocurrency industry in Nigeria.

Adedeji made this statement on Saturday during a stakeholder engagement session with the Senate and House Committee on Finance. The event, organized by the Intergovernmental Relations Department of the FIRS, was themed, ‘Repositioning The FIRS to Achieve Its Mandate.’

During his address, Adedeji emphasized the need for a robust legal framework to oversee the rapidly evolving crypto sector, which has become a significant part of the global financial system. He highlighted the challenges posed by the absence of clear regulations, noting that without proper oversight, the crypto industry could pose risks to the Nigerian economy.

The push for legislative action comes in the wake of increased scrutiny on cryptocurrency platforms, particularly following the controversial exit of Binance from the Nigerian market. The platform faced allegations from the Nigerian government of manipulating the naira-to-dollar exchange rate, which has raised concerns about the potential impact of unregulated crypto activities on the nation’s financial stability.

Adedeji stressed that the proposed legislation would not only aim to regulate the operations of cryptocurrency platforms but also ensure that they contribute fairly to the national revenue through appropriate taxation mechanisms. He called on the National Assembly to support this initiative, which he believes is crucial for safeguarding Nigeria’s economic interests in the digital age.

“The cryptocurrency industry is growing at an unprecedented rate, and it’s imperative that we have the necessary legal tools to manage this growth effectively,” Adedeji remarked. “We must ensure that this sector is regulated in a way that protects our economy while also harnessing its potential for revenue generation.”