Nigeria’s Securities and Exchange Commission (SEC) is set to issue licences for virtual assets providers, including cryptocurrency firms, in a bid to safeguard investors amid the increasing adoption of digital currencies in the country.
In an interview with the Bloomberg, SEC Director-General, Emomotimi Agama revealed that the first batch of these licences would be issued as early as this month.
He also highlighted that the move aligns Nigeria with other global markets, such as the European Union, South Africa, and Botswana, which have already implemented regulations for digital assets.
Agama emphasised the importance of supporting the country’s youth in leveraging the benefits of fintech, noting the vast and growing market for these technologies. He further explained that the SEC’s decision reflects the need for a structured environment where digital transactions can be conducted transparently.
Additionally, he addressed the Central Bank of Nigeria’s (CBN) previous ban on banks facilitating crypto transactions, which was driven by concerns over exchange rate manipulation and the depreciation of the naira.
It is reported that the CBN initially banned crypto transactions, however, last year it reversed its stance, instructing banks to disregard the earlier prohibition
This milestone set the stage for the SEC’s current regulatory efforts.
In July, it is, however, reported that the SEC had revealed that crypto firms seeking licences would be required to establish local offices in Nigeria and have their chief executive officers resident in the country.
He stressed that the regulator’s approach will focus on transparency, investor protection, and maintaining stability in the financial system, while preventing digital currencies from undermining the naira.
