NIGERIA Law and Practice Contributed by: Tiwalola Osazuwa, Peretimi Akinmodun, Lazarus Uwa Kalu and Mubaraq Popoola, ǼLEX
Cross-border legal disputes Blockchain transactions occur across multiple jurisdictions. This complicates the determination of applicable law and forum for settlement of disputes. Opportunities Efficient cross-border operations Cryptocurrencies eliminate intermediaries in cross-border transactions, reducing costs and delays. Intellectual property and content management Automating royalty payments and licens - ing through smart contracts has the potential to reduce disputes and administrative costs. Blockchain can also provide transparent and tamper-proof records of content ownership and usage, aiding in copyright enforcement. New business models Blockchain can enable tokenisation of assets or revenue streams, creating new business models. Blockchain and Crypto Regulation Blockchain In May 2023, following the approval of the Federal Executive Council, the NITDA issued the National Blockchain Policy for Nigeria (the “Blockchain Policy”) as a roadmap for Nigeria’s adoption of blockchain technology. Through the Blockchain Policy, the Nigerian government recognised cryptocurrency as a potential cata - lyst for the adoption of blockchain. One of the expected outcomes of the Blockchain Policy is the creation of supportive legal and regulatory frameworks that will provide clarity and certainty to persons who intend to adopt blockchain to create innovative solutions in any sector.
Before the introduction of the Blockchain Pol - icy, the NITDA had developed and issued the National Blockchain Adoption Strategy (the “Adoption Strategy”), providing a detailed road - map and strategy for adopting blockchain. In terms of regulation and legal framework, the Adoption Strategy envisions a principle-based and technology-neutral approach that encour - ages innovation and development. Cryptocurrencies In 2022, the SEC released the Digital Assets Rules. The Digital Assets Rules created various categories of digital assets service providers and their respective registration and licensing requirements, including VASPs, digital asset offering platforms (DAOPs), digital asset custodi - ans (DACs) and digital asset exchanges (DAXs). However, the Digital Assets Rules were not operationalised and applications for registration or licensing were not accepted by the SEC. In 2024, the SEC issued the ARIP Framework to facilitate the onboarding of qualified cryptocur - rency entities into the SEC’s ARIP Framework and provide a path to registration for operators. The SEC subsequently issued the Exposure of Amendments to the Digital Assets Rules in 2024. They will come into effect on 30 June 2025. The amendments to the Digital Assets Rules cover advertisements, marketing and promotion, including third-party/social media promotions and mandate disclosure of paid promotions. Furthermore, the amendments create a new dig - ital assets intermediary (DAI) category to cover persons that are not DAOPs, DAXs or DACs but are facilitating virtual assets transactions. Similarly, the CBN reversed its prohibition on banks facilitating cryptocurrency transactions, through the issuance of the Guidelines on Opera -
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