Nigerian Securities and Exchange Commission (NSE) plans to implement a licensing scheme for crypto exchanges across the country.
Emomotimi Agama, director general of Nigeria’s SEC said that the crypto sector has seen a rise in demand as Nigerians are increasingly choosing this new asset class.
What is the popularity of cryptocurrencies in Nigeria?
The SEC’s director described himself as a “crypto-enthusiast” in an interview with Bloomberg.
Fintech is a field that can be very profitable for the young people of our country. We need to support them to make the most out of it. It is a huge market that is constantly growing.
The securities regulator will introduce a new licensing system by August 31st, which will provide a controlled environment for investors while collecting all the necessary data and providing proper supervision.
Agma also added that Agma would not tolerate any market manipulation activities which could affect the Naira’s price. The SEC announced previously that it would ban cryptocurrency peer-to-peer trading using Naira.
People in countries facing economic difficulties have turned to cryptocurrencies as a hedge.
Nigeria has become the country with the fastest growing crypto economy in the world due to the appetite of Nigerians for cryptocurrency.
Agma stated in a press release last month that the Nigerian cryptocurrency market is currently worth over $400,000,000 and about 33.4% Nigerians are already using cryptos.
Nigeria, he said, is the biggest recipient of remittances on the continent.
The decentralized nature also allows the unbanked to access financial services. Agma added that these benefits had pushed adoption to grassroots levels. “Some people do not have bank accounts but have wallets.”
Agma was part of the seven-member SEC Board that President Bola Tinubu approved in April 2024.
The SEC updated the rules for digital assets issuance and added provisions to accommodate Virtual Asset Service Providers.
Crypto regulations are being re-evaluated across the country
Recent SEC licensing plans are in response to lawmakers’ demands for more clear regulations.
Wale Edun said that the SEC should speed up the crypto assets regulations in July. He believes this is crucial for maintaining Nigeria’s economy integrity.
Other regulators have taken similar initiatives.
Federal Inland Revenue Service (FIRS), Nigeria’s tax authority, announced that it would also increase its supervision of the cryptocurrency sector by introducing comprehensive legislation to tax the crypto industry.
Zacch Adedeji (executive chairperson of Nigeria’s Tax Regulator) noted in a recent meeting with National Assembly Finance Committees that the bill proposed would regulate cryptocurrency, reduce associated risks and help the economy.
The post Nigerian SEC grants licenses to cryptocurrency exchanges and boosts industry growth could be updated as new information becomes available
