The Securities and Exchange Commission says it is preparing to introduce licences for providers of virtual assets, including cryptocurrencies, describing it as part of its strategy to protect investors amid the growing adoption of digital currencies in the country.
In an interview with Bloomberg on Tuesday, SEC Director-General, Emomotimi Agama, revealed that the first batch of licences for digital services and tokenised assets could be issued this month.
“Being a crypto and fintech enthusiast, I can tell you this is going to happen sooner than expected. We must support the youth of this country in harnessing the benefits that fintech offers. The market is vast and continues to grow,” he stated.
He added that this regulatory move aligns Nigeria with other global markets such as the European Union, South Africa, and Botswana, which have already taken steps to oversee the digital asset class, according to Bloomberg.
Reiterating the need for a digital environment, Agama explained that the Central Bank of Nigeria’s ban on banks facilitating crypto transactions was due to concerns over exchange rate manipulation and naira’s depreciation.
He added that the SEC’s decision underscores the need for a structured environment where digital transactions can be conducted transparently.
Agama noted that the SEC’s aim is to create a regulated platform for crypto activities while ensuring that digital currencies are not used to undermine the naira.
He stressed that the regulator’s approach will focus on transparency, investor protection, and maintaining stability in the financial system.
