Nigeria's SEC to issue first crypto exchange licenses this month

BREAKING NEWSAugust 20, 2024 at 5:02 PM UTC

TLDR

Nigeria's SEC preparing to license issuers of virtual assets, including cryptocurrencies, in response to growing market demand.
SEC Director-General aims to issue first licenses for digital services and tokenized assets this month.
Significant step towards formal regulation of digital assets in one of Africa's largest economies.

Nigeria's Securities and Exchange Commission (SEC) is preparing to license issuers of virtual assets, including cryptocurrencies, as demand continues to surge across the country, according to Bloomberg.

The initiative marks a significant step in the formal regulation of digital assets in one of Africa's largest economies. SEC Director-General Emomotimi Agama stated that the regulator aims to issue its first licenses for digital services and tokenized assets as soon as this month.

This move is in response to the rapidly growing market for cryptocurrencies in Nigeria, with Agama highlighting the substantial and expanding market size.

Key Takeaways

Nigeria is aligning itself with other nations that have implemented or are moving towards licensing regimes for cryptocurrency companies. South Africa and Botswana have already taken steps in this direction, while Ghana has issued draft guidelines for crypto regulation. Internationally, France introduced a new regulatory framework earlier this month, and the UK has been registering crypto companies under its anti-money laundering rules since 2020, with more specific regulations expected. Nigeria also plans to introduce a bill by September that would enable the government to tax cryptocurrency transactions. Meanwhile, the country is taking legal action against the crypto exchange Binance for alleged tax evasion and money laundering, with one of Binance's executives currently held in prison on money laundering charges.

Nigeria

Cryptocurrencies

Regulation

Binance

Digital Assets

Finance

Investments

Virtual Assets