As cryptocurrency adoption continues to soar in Nigeria, the Securities and Exchange Commission (SEC) have disclosed their plans to license issuers of virtual assets, including cryptocurrencies, according to a Bloomberg report released on Tuesday of last week.
According to Director-General Emomotimi Agama, the SEC plans to issue its first licenses for digital services and tokenized assets as early as this month.
Creating a Regulatory Framework
According to the SEC, this step is part of a larger worldwide trend in which authorities are attempting more and more to formally regulate the cryptocurrency markets. The SEC’s Director-General, Emomotimi Agama, emphasized the significance and opportunity of this regulatory shift.
In an interview with Bloomberg Television, Agama said, “As a fintech and cryptocurrency enthusiast, I can tell you without doubt that this is going to happen sooner than you think.” Citing the ever-expanding market size, he highlighted the significance of helping the nation’s young to take advantage of innovative fintech opportunities.
Nigeria’s decision is consistent with other regions’ regulatory measures. Similarly, in an effort to preserve investor safety and stabilize markets, the European Union, South Africa, and Botswana have put regulations for managing digital assets into place. These actions are the result of a turbulent 2022 that saw major market collapses and scandals that sparked demands for enhanced regulation.
What the Future Holds
It is anticipated that this move would further the integration of digital assets into the nation’s financial system. The country’s financial industry expects a more regulated environment that strikes a balance between investor safety and development as Nigeria advances with its crypto licensing initiative.
Nigeria also intends to introduce a measure that would allow it to impose cryptocurrency taxes by September. Meanwhile, judicial proceedings against cryptocurrency exchange Binance are underway, with charges of tax evasion and money laundering resulting to the detention of one of the company’s executives.
