The Nigerian Securities and Exchange Commission (SEC), has announced plans to issue licenses to cryptocurrency exchanges platforms in Nigeria.
Nigeria has one of the fastest-growing crypto economies globally, with a very high demand for crypto assets.
This major growth spurred the Central Bank of Nigeria to lift restrictions on cryptocurrency transactions, which had been in place for two years, thereby acknowledging the sector’s immense potential and its role in shaping Nigeria’s economic future.
Despite previous crackdowns on crypto entities, the SEC now seeks to provide a transparent platform for cryptocurrency dealings, devoid of manipulation and illicit activities. This policy shift aims to regulate and support the burgeoning crypto industry, ensuring investor protection and market stability.
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This forward-thinking move aims to complement the rapidly growing adoption of cryptocurrencies in Nigeria, providing a regulated framework for the industry to thrive.
In June, the SEC launched a pioneering program designed to expedite the registration process for Virtual Assets Providers (VASPS), streamlining the onboarding process for crypto entities.
Additionally, the commission announced sweeping amendments to its rules governing Digital Assets Issuance, platforms, Exchanges, and Custody, providing clarity and certainty for industry stakeholders.
Emomotimi Agama, a self-proclaimed crypto and fintech enthusiast, reiterated his unwavering commitment to regulating cryptocurrency in Nigeria. He emphasized the imperative need to support young Nigerians, who are deeply invested in the industry, citing the vast and growing market size.
The SEC’s licensing initiative aims to provide a regulated framework for crypto exchanges, enhance transparency and accountability, protect investors and consumers, foster innovation and growth, and, position Nigeria as a hub for crypto activity.
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However, the Nigerian authorities remain embroiled in a dispute with Binance Ltd, alleging money laundering and tax evasion. Tigran Gambaryan, a Binance executive, remains in detention, highlighting the ongoing challenges in the sector.
