SEC To License Cryptocurrency Providers In Nigeria
The Securities Exchange Commission (SEC) of Nigeria has announced its plans to license providers of virtual assets, including cryptocurrencies, as part of its strategy to capitalize on the expanding opportunities in the sector while ensuring investor protection. This decision comes amid a rapid increase in the adoption of digital assets across the country.
In an interview with Bloomberg, SEC Director-General Emomotimi Agama disclosed that the commission plans to issue its first licenses for digital services and tokenized assets within this month. Agama, a proponent of crypto and fintech, expressed confidence in the initiative, stating, “This is going to happen sooner than you think.”
He highlighted the importance of supporting Nigeria’s youth, who are deeply involved in the fintech space, and recognized the vast market potential that digital assets hold. “The market size is huge and it is growing,” Agama observed.
The SEC’s licensing effort is intended to create a formal framework for digital asset activities, allowing for improved regulation and data gathering. However, Agama made it clear that while the SEC encourages innovation in fintech and cryptocurrencies, it will not permit the use of digital currencies to manipulate Nigeria’s currency.
This regulatory step follows notable developments in Nigeria’s cryptocurrency landscape. In December 2023, the Central Bank of Nigeria (CBN) lifted its ban on cryptocurrency transactions, indicating a shift in policy. However, the federal government subsequently took action against Binance, a major crypto exchange, for regulatory violations.
In May, the SEC announced plans to remove the naira from all peer-to-peer (P2P) platforms, including Binance, as part of its efforts to curb market manipulation within the cryptocurrency space. Agama revealed in June that Nigeria’s cryptocurrency market is valued at over $400 million, with expectations that the volume of crypto transactions in the country will reach $52.5 million by 2028, marking a projected 12.66 percent increase from 2024.
