Nigeria’s Securities and Exchange Commission (SEC) is gearing up to grant licenses to cryptocurrency exchanges, marking a significant step toward regulating the country’s rapidly expanding digital asset market. In June, the SEC revised its regulations governing digital asset issuance, offering platforms, exchange, and custody. The SEC designed these updates to improve the regulatory framework and enhance the monitoring of cryptocurrency trading.
Speaking on Bloomberg Television, SEC Director-General Emomotimi Agama expressed optimism about the forthcoming changes. “As a crypto and fintech enthusiast, I can confidently say this will happen sooner than expected,” he stated. Agama emphasized the importance of supporting the nation’s youth in harnessing the opportunities presented by fintech, noting the immense and growing market potential.
However, the path to crypto integration has not been without challenges. Earlier this year, the cryptocurrency exchange OKX halted Naira withdrawals due to regulatory complications. This followed accusations against Binance, the world’s largest crypto exchange, of currency manipulation and money laundering in Nigeria. OKX, based in the Seychelles, also ceased operations in other regions, including India, due to similar regulatory obstacles.
The SEC is committed to creating a regulated environment where cryptocurrency activities can be conducted transparently and securely. “We aim to establish a platform that enables legitimate cryptocurrency transactions while gathering all necessary information,” Agama explained. He stressed that the SEC would not tolerate the use of cryptocurrency for currency manipulation within Nigeria.
As Nigeria continues to embrace cryptocurrency, the SEC’s licensing initiative is poised to play a crucial role in shaping the future of digital finance in the country.
