- Nigeria’s Securities and Exchange Commission (SEC) has denied issuing any crypto licenses, despite reports suggesting a major crypto platform had received provisional approval.
- The SEC is now preparing to issue its first licenses for digital services and tokenized assets in August, marking a potential policy shift from its previous stance against P2P crypto trading.
- This development comes after a period of increased scrutiny of the crypto industry in Nigeria, with concerns over market manipulation and national security.
The Nigerian Securities and Exchange Commission (SEC) has officially denied issuing any crypto licenses, contradicting reports from several publications claiming that a major crypto platform had received provisional approval. This clarification comes ahead of the SEC’s planned issuance of the first licenses for digital service and tokenized assets in August.
The SEC’s statement signals a potential policy shift, especially considering its previous stance on banning P2P crypto trading, a practice blamed by Nigerian authorities for exacerbating FX market volatility. This shift in approach may indicate a move towards a more regulated and inclusive environment for the crypto industry in Nigeria.
The SEC’s decision to issue licenses comes after a period of heightened scrutiny of crypto exchanges in Nigeria. Concerns over the use of P2P trading for manipulating the naira, as well as the designation of crypto trading as a national security issue by the country’s National Security Adviser, have prompted regulatory action. While the SEC’s plans for a regulated crypto market are still emerging, this development signals a potential turning point for the cryptocurrency industry in Nigeria.
What you should know
Cryptocurrency in Nigeria is undergoing a period of rapid evolution, with the government aiming to create a regulated and secure environment for the industry. The Nigerian Securities and Exchange Commission (SEC) is taking a leading role in this process, with plans to issue licenses for cryptocurrency exchanges and to introduce regulations for digital assets and tokenized securities.
These licenses would provide crypto exchanges with a legal framework to operate within the country, ensuring compliance with regulatory requirements and promoting investor confidence. The introduction of specific regulations for digital assets and tokenized securities would further pave the way for the development of a robust and sustainable crypto ecosystem in Nigeria.
The issuance of these licenses is a significant step towards a more integrated and regulated cryptocurrency industry in Nigeria. While the regulatory landscape is still developing, the SEC’s efforts demonstrate a commitment to creating a more secure and transparent environment for investors and businesses involved in cryptocurrency.
