SEC of Nigeria to License Cryptocurrency Providers

The Securities Exchange Commission (SEC) of Nigeria has announced plans to license providers of virtual assets, including cryptocurrencies.

This initiative is part of a broader strategy to ensure investor protection and support the country's rapidly growing fintech ecosystem.

"This is going to happen sooner than you think," stated Emomotimi Agama, the SEC’s Director-General, in an interview with Bloomberg.

Agama, a well-known advocate for crypto and fintech innovation, emphasized the importance of this regulatory step in supporting Nigeria’s youth, who are heavily involved in the fintech space.

"The market size is huge and it is growing," he added, highlighting the significant potential that digital assets represent.

The SEC's licensing initiative aims to provide a formal platform for digital asset activities, enabling better regulation and data collection.

This move comes as the adoption of digital assets continues to surge across Nigeria.

The commission intends to issue its first licenses for digital services and tokenized assets within this month.

This regulatory development follows a series of changes in Nigeria’s cryptocurrency landscape.

In December 2023, the Central Bank of Nigeria (CBN) lifted a ban on cryptocurrency transactions, signaling a shift in policy.

However, the federal government later cracked down on Binance, a major crypto exchange, citing regulatory breaches.

In May, the SEC announced plans to delist the naira from all peer-to-peer (P2P) platforms, including Binance, as part of efforts to curb manipulation within the cryptocurrency market.

Agama revealed 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—a projected 12.66 percent increase from 2024.

Despite the enthusiasm for digital assets, Agama stressed that the SEC would not tolerate the use of cryptocurrencies to manipulate Nigeria's currency.