Nigeria’s Securities and Exchange Commission (SEC) is preparing to introduce a licensing process for digital asset issuers, including those dealing in cryptocurrencies, as the country sees a surge in crypto adoption.
According to a report by Bloomberg on Tuesday, the SEC aims to issue its first licenses for digital services and tokenized assets as early as this month.
Director-General Emomotimi Agama emphasized the significant growth of the market, saying, “The market size is huge, and it is growing.” The move aligns Nigeria with other nations that have implemented crypto licensing frameworks to regulate and manage the rapidly expanding digital asset market.
South Africa, the continent’s largest economy, recently rolled out its own licensing regime, while countries like France and the U.K. have already established processes to regulate crypto companies.
In addition to the licensing push, Nigeria is planning to introduce a bill by September that would enable the government to tax cryptocurrencies. The regulatory environment in the country is also heating up, as Nigeria recently filed a lawsuit against the global crypto exchange Binance for alleged tax evasion and money laundering, and one of its executives is currently being held in prison on related charges.
This regulatory shift marks a significant development in Nigeria, one of the fastest-growing crypto markets globally, as it seeks to balance innovation with oversight in the digital asset space.
This regulatory shift marks a significant development in Nigeria, one of the fastest-growing crypto markets globally, as it seeks to balance innovation with oversight in the digital asset space.
