The Nigerian SEC is set to issue licenses for cryptocurrency exchanges, reflecting the country's growing market and commitment to fintech innovation amidst evolving regulations.
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Nigeria’s Securities and Exchange Commission (SEC) is poised to introduce licensing for cryptocurrency exchanges, marking a significant step in the regulation of the fast-growing digital asset market. In June, the SEC revised its rules on Digital Asset Issuance, Offering Platforms, Exchange, and Custody, aiming to enhance the regulatory framework for these emerging financial technologies.
Related: Nigeria’s SEC to Enforce Regulations on Unlicensed Crypto Exchanges
Speaking on Bloomberg Television, SEC Director-General Emomotimi Agama expressed optimism about the impending changes, emphasizing the importance of supporting the country’s youth in harnessing the benefits of fintech. “The market size is vast and expanding,” Agama noted, indicating the rapid growth of Nigeria’s crypto economy.
Nigeria has positioned itself as one of the fastest-growing crypto economies globally. Last December, the Central Bank of Nigeria lifted a nearly two-year ban on banks facilitating cryptocurrency transactions, recognizing the need to adapt to the rising global demand for digital currencies. This shift in policy underscored Nigeria’s position as a major player in crypto adoption, with the country ranking second globally in 2022.
Related: Nigerian Blockchain Leader Applauds Crypto Exchange Approvals, Urges Regulatory Clarity
However, regulatory challenges remain. Earlier this year, OKX, the world’s second-largest digital asset exchange, halted Naira withdrawals due to regulatory complications. This move followed accusations against Binance, the largest global crypto exchange, of currency manipulation and money laundering in Nigeria.
Related: SEC Changes Stance on Crypto Regulations, Combats Fraud in Digital Assets
SEC’s upcoming regulations aim to create a structured environment for cryptocurrency activities, ensuring transparency and protecting the nation’s financial system from potential misuse. “We will not support the use of cryptocurrency to manipulate our currency,” Agama emphasized.
Emily brings a decade of expertise in blockchain technology and decentralized finance (DeFi). She specializes in market trends and regulatory developments, providing in-depth analyses that resonate with seasoned investors and beginners alike. With a background in financial journalism, she is dedicated to bringing clarity to the fast-paced world of crypto.
