The Securities Exchange Commission (SEC) is poised to license virtual asset providers, including cryptocurrencies, to harness opportunities and safeguard investors as adoption rates skyrocket in Nigeria. In an interview with Bloomberg, SEC Director-General Emomotimi Agama revealed plans to issue the first licenses for digital services and tokenized assets this month.
Agama, a self-proclaimed fintech enthusiast, expressed confidence that this development will happen sooner than expected. He emphasized the need to support Nigeria’s youth in leveraging fintech benefits, citing the vast and growing market size.
The SEC aims to create a regulated platform for cryptocurrency transactions, ensuring access to necessary information while preventing currency manipulation. This move comes after the Central Bank of Nigeria lifted the ban on cryptocurrency transactions in December 2023.
However, the federal government recently cracked down on Binance, a crypto exchange, for regulatory breaches. The SEC also announced plans to delist the naira from peer-to-peer platforms, including Binance, to prevent manipulation in the cryptocurrency space.
Agama reported that Nigeria’s cryptocurrency market is valued at over $400 million, with projected transaction volumes reaching $52.5 million by 2028, representing a 12.66% increase between 2024 and 2028.
