The Securities and Exchange Commission of Nigeria (SEC Nigeria) is preparing to license crypto exchanges, according to Emomotimi Agama, the institution’s Director General.
“Being a crypto enthusiast and fintech enthusiast, I can tell you without doubt that this is going to happen sooner than you think,” Emomotimi said in a recent interview.
He emphasized the importance of supporting Nigeria’s youth in harnessing the benefits of fintech. The move also comes as Nigeria experiences a surge in cryptocurrency adoption.
“The market size is huge and it is growing,” Agama noted.
According to SEC Nigeria, the local cryptocurrency market is valued at over $400 million with 33.4% of Nigerians using or owning cryptocurrencies.
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The comments come only a few days after the commission issued a notice to operators that it was amending its rules on Digital Asset Issuance, Offering Platforms,… pic.twitter.com/zZ6KZWTpd9
— BitKE (@BitcoinKE) June 28, 2024
Agama highlighted the SEC’s objectives when it comes to regularizing the sector:
“We want to provide a platform where people can formally do these things and we are able to get all of the information that we need.”
However, he cautioned against potential misuse, adding:
“What we will not encourage is the use of cryptocurrency to manipulate our currency.”
In June 2024, the SEC issued a directive for cryptocurrency exchanges and digital asset traders to re-register their businesses within 30 days due to ‘current realities’ or face potential enforcement actions. The initiative is part of a broader effort to amend rules on digital asset issuance, offering platforms, exchanges, and custody for virtual asset service providers (VASPs).
Agama has predicted an increase in crypto trade volume in the coming years despite recent regulatory challenges involving exchanges, notably Binance, which has been at the forefront of alleged currency manipulation and tax evasion.
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The Minister noted that Binance’s turnover was not taxed by the government and exceeded Nigeria’s budget… pic.twitter.com/5pqCu4WEb9
— BitKE (@BitcoinKE) June 10, 2024
“The lack of a comprehensive regulatory framework has created uncertainty, which can deter both investors and innovators. Cybersecurity threats, including hacking and fraud, pose significant risks,” the SEC chief has said in the recent past.
“A substantial portion of the population lacks adequate financial literacy, making them vulnerable to scams and risky investments.”
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