After banning Binance's operations, FG to issue licence for cryptocurrencies in Nigeria

• The Securities and Exchange Commission has declared its intention to grant licenses to vendors of digital assets, such as cryptocurrency
• This month, the government intends to provide the first licenses for tokenized assets and digital services, according to a recent interview
• According to Agama, the nation would not support the use of cryptocurrencies to influence the value of our money

Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.

As cryptocurrency adoption rates rise in Nigeria, the Securities Exchange Commission (SEC) says it intends to license suppliers of virtual assets, including cryptocurrencies, in order to seize possibilities and safeguard investors.

By 2028, cryptocurrency transactions in Nigeria is expected to total $52.5 million. Photo Credit: Filadendron
Source: UGC

The director-general of the SEC, Emomotimi Agama, stated in a Bloomberg interview that the agency plans to award the first licenses for digital services and tokenized assets this month.

“Being a crypto enthusiast and fintech enthusiast, I can tell you without doubt that this is going to happen sooner than you think,” Agama said.

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“We must support the youths of this country to be able to achieve the benefit that is accruable in fintech. The market size is huge and it is growing.”

Agama said the SEC wants to provide a platform where people can formerly “do these things, and we are able to get all of the information that we need”.

“What we will not encourage is the use of cryptocurrency to manipulate our currency,” Agama said.

The Central Bank of Nigeria (CBN) removed the prohibition on cryptocurrency transactions in December 2023.

Following months of regulatory violations, the federal government took harsh measures against cryptocurrency exchange Binance.

In May, the SEC declared its intention to remove naira from all peer-to-peer (P2P) exchanges, including Binance.

According to the commission, the choice was made to prevent the degree of manipulation occurring in the Bitcoin market.

According to Agama, the value of Nigeria's cryptocurrency industry exceeded $400 million in June.

According to him, there would be $52.5 million worth of cryptocurrency transactions in Nigeria in 2028, a 12.66% rise from 2024 to 2028.

SEC issues new guideline to cryptocurrency dealers

Legit.ng reported that the Nigerian Securities and Exchange Commission (SEC) has amended the regulations pertaining to digital asset issuance, offering platforms, exchange, and custody.

The purpose of the amendment process is to improve the regulatory framework by making it more thorough and adaptable to the intricacies of digital asset markets.

As part of this regulatory reform, the SEC launched a new compliance program called the Accelerated Regulatory Incubation Programme (ARIP).

Source: Legit.ng