By regulating Nigeria’s rapidly expanding cryptocurrency sector, the SEC hopes to provide a transparent and safe environment for the trading of digital assets.
After updating its regulations regarding the issuing of digital assets, providing platforms, exchanges, and custody, the Securities and Exchange Commission (SEC) of Nigeria is preparing to grant licenses to cryptocurrency exchanges. The SEC wants to create a structure for handling virtual currencies in a productive way.
The SEC’s Director General, Emomotimi Agama, emphasized the advantages for the populace. Fintech and cryptocurrency enthusiast Agama was optimistic about the future in an interview with Bloomberg Television.
Agama asserts that in order for young entrepreneurs to take advantage of the expanding fintech business, it is critical to create a supportive atmosphere.
Recently, the Central Bank of Nigeria lifted its prohibition on banks processing cryptocurrency transactions in response to the growing popularity and acceptance of virtual currencies. This modification follows the introduction of a 2020 law intended to severely restrict the local cryptocurrency market.
In 2021, Nigeria became one of the most popular countries for the adoption of cryptocurrencies, and more people are looking to purchase and trade digital assets.
The nation’s innovative approach to revising its regulations demonstrates its commitment to setting the standard for digital currency innovation.
This year, trading platforms like OKX and Binance faced operational challenges due to obstacles like accusations of manipulating currency values and participating in money laundering.
Agama added that although the SEC supports the official usage of cryptocurrencies, it will not back actions that can cause the value of the dollar to become unstable. “Our objective is to safely integrate bitcoin operations into our financial system,” he made clear. This strategy seeks to strike a balance between economic stability and innovation.
Nigeria hopes to lead the world in regulated digital money by granting licenses to cryptocurrency exchanges, guaranteeing consumer safety, and following international financial patterns.
