Key Insights
- Nigeria’s SEC plans to start licensing issuers of virtual assets, including cryptocurrencies, as the country sees a surge in crypto adoption.
- The SEC’s Director-General stated that the regulator aims to issue its first licenses for digital service and tokenized assets as early as this month.
ABUJA (MarketsXplora) – Nigeria’s Securities and Exchange Commission (SEC) has announced plans to start licensing issuers of virtual assets, including cryptocurrencies, as the West African nation sees a surge in adoption, according to a report by Bloomberg.
The SEC’s Director-General, Emomotimi Agama, told Bloomberg that the regulator aims to issue its first licenses for digital service and tokenized assets as early as this month. Agama cited the growing market size and increasing demand for crypto in the country as the driving factors behind this decision.
“The market size is huge and it is growing,” Agama said, emphasizing the SEC’s response to the surge in crypto adoption within Nigeria.
This move by the Nigerian SEC aligns with the broader trend of nations across the world taking steps to license and regulate the crypto industry. South Africa, the largest economy on the continent, recently introduced a crypto licensing regime, while France and the United Kingdom have also taken similar measures.
Read also! Quidax Applies for Nigerian SEC Digital Assets Exchange License
In addition to the licensing plans, Nigeria is also preparing to introduce a bill by September that would enable the government to tax the crypto sector.
This development comes amid the country’s ongoing legal battle with cryptocurrency exchange Binance, which is facing allegations of tax evasion and money laundering. Nigerian authorities have also arrested a Binance executive on money laundering charges.