Key takeaways:
- The SEC of Nigeria intends to grant licenses to exchanges that trade crypto.
- Nigeria has become one of the crypto economies with the highest rate of growth in recent years.
The Securities and Exchange Commission (SEC) of Nigeria intends to grant licenses to exchanges that trade crypto.
The SEC announced its intentions to regulate the emerging asset class in June and revised its rules on digital asset issuance, offering platforms, exchange, and custody. It is anticipated that the amendment process will enhance the regulatory landscape.
In a Bloomberg Television interview, Director-General Emomotimi Agama of the SEC stated:
“Being a crypto enthusiast and fintech enthusiast, I can tell you without doubt that this is going to happen sooner than you think.”
Agama told Bloomberg that the SEC aims to provide a platform where individuals can legally carry out these actions, and “we are able to get all of the information that we need.”
Nigeria has become one of the crypto economies with the highest rate of growth in recent years. After prohibiting lenders from using digital currencies for almost two years, the Central Bank of Nigeria removed limits on Nigerian banks’ ability to facilitate crypto transactions in December of last year.
The central bank admitted that, in light of the growing demand and use of crypto worldwide, it was not reasonable to continue imposing harsh regulations on financial institutions.
Nigeria was the second-largest economy in terms of the adoption of crypto last year. According to the volume of Google searches for “crypto” or “buy crypto,” Nigeria was dubbed the nation most interested in crypto in August 2022.
The largest crypto exchange in the world, Binance, was accused of money laundering and currency manipulation involving Nigeria, and as a result, OKX, a crypto exchange, ceased accepting Naira withdrawals earlier this year due to regulatory concerns.
Due to legal obstacles, OKX, a digital asset exchange based in Seychelles and ranking second globally in terms of trading volume, had also ceased operations in other locations, including India.
