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.
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.
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.
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.
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.
