The Securities and Exchange Commission (SEC) has announced plans to license providers of virtual assets, including cryptocurrencies, in a bid to harness opportunities and safeguard investors as adoption rates increase in Nigeria.
In an interview with Bloomberg, Emomotimi Agama, SEC’s Director-General, revealed that the commission aims to issue its first licenses for digital services and tokenized assets this month. “As a crypto and fintech enthusiast, I can confidently say that this is going to happen sooner than you think,” Agama stated.
He emphasized the need to support Nigerian youths in capitalizing on the growing fintech sector. “The market size is substantial and continues to expand,” Agama noted.
The SEC seeks to create a formal platform for these activities to ensure proper oversight and data collection. However, Agama made it clear that the commission would not allow the use of cryptocurrency to manipulate the nation’s currency.
In December 2023, the Central Bank of Nigeria (CBN) lifted its ban on cryptocurrency transactions. However, the federal government later took action against Binance, a prominent crypto exchange, citing regulatory breaches.
In May, the SEC announced its intention to delist the naira from all peer-to-peer (P2P) platforms, including Binance, to curb manipulation in the cryptocurrency market.
Agama disclosed in June that Nigeria’s cryptocurrency market is valued at over $400 million.
