Nigerian SEC Planning to Start Giving Crypto Licences to Crypto Exchanges: Crypto Regulation Coming in Nigeria
The Nigerian securities regulatory body is planning to create a special type of licence for crypto companies to allow them to operate under a regulated environment and protect investors.
Nigeria is a significant jurisdiction for the adoption of cryptocurrencies. Despite the lack of a crypto regulatory framework and the Nigerian central bank’s banking ban restrictions on crypto companies, the Nigerian population has not lost confidence in cryptocurrencies.
A recent report by Bloomberg noted that Nigeria’s securities regulatory body (SEC), based in Abuja, plans to issue licences to virtual asset providers, including cryptocurrency exchanges, as early as this month. Director-General Emomotimi Agama emphasised that the SEC aims to create a formal platform for these activities and gather necessary information, while supporting the country’s youth in benefiting from fintech.
This regulatory move comes as crypto activities rise in Nigeria, driven by a young, tech-savvy population. The SEC’s initiative aligns Nigeria with global efforts to regulate digital assets.
Nigeria vs. Crypto Exchanges
In early 2024, tensions between Nigeria and cryptocurrency exchanges escalated rapidly. Nigerian government authorities remained cautious about the growing influence of cryptocurrencies, leading to stricter oversight of crypto-related activities.
Binance, one of the largest cryptocurrency exchanges, found itself in a standoff with Nigerian authorities. Previously, the Central Bank of Nigeria (CBN) had imposed restrictions on crypto transactions, which significantly impacted Binance’s operations in the country. As the new year begins, Binance is navigating ongoing regulatory challenges as it seeks to maintain its foothold in Nigeria’s expanding crypto market. One of Binance’s employees is in the custody of Nigerian authorities and is reportedly facing severe health issues due to negligence.
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