The Nigerian Securities and Exchange Commission (SEC), led by Emomotimi Agama, has announced plans to issue licenses to cryptocurrency exchanges in the country.
In June, the Nigerian SEC introduced a new programme to expedite the registration process for virtual asset service providers (VASPs).
Additionally, the commission announced amendments to its regulations regarding digital asset issuance, offering platforms, exchanges, and custody services.
During an interview with Bloomberg, SEC Chief Emomotimi Agama said that to support the country’s youth, who are increasingly involved in the industry, the commission will regulate the cryptocurrency sector in Nigeria.
“Being a crypto and fintech enthusiast, I can tell you without a doubt that this is going to happen sooner than you think,” Agama stated.
“We must support the youths of this country to be able to achieve the benefits that is accruable in fintech. The market size is huge, and it is growing.”
Agama explained that the regulatory body aims to create a transparent platform for cryptocurrency transactions, ensuring the exclusion of bad actors.
“The SEC wants to provide a platform where people can formally do these things, and we can gather all the information we need,” he said.
“What we will not encourage is the use of cryptocurrency to manipulate our currency.”
Nigeria is recognised as one of the fastest-growing crypto economies globally, with a huge demand for digital assets.
This rapid growth prompted the Central Bank of Nigeria (CBN) to lift its two-year ban on banks facilitating cryptocurrency transactions.
Last year, Nigeria was named the second-largest economy in terms of crypto adoption and was recognised as the most crypto-interested country by Google search volume in August 2022.
However, following earlier crackdowns this year, major exchanges have ceased Naira P2P (peer-to-peer) trading and Naira withdrawals on their platforms.
Notably, exchanges like OKX and Binance delisted Naira P2P trading amid accusations of currency manipulation and money laundering by Nigerian authorities.
