SEC Nigeria to Regulate Crypto Exchanges with New Licensing Framework

Nigeria’s Securities and Exchange Commission (SEC) plans to license providers of virtual assets including cryptocurrencies to tap opportunities and protect investors as adoption rates surge in the West African nation.

The Abuja-based Securities and Exchange Commission is looking to issue its first licenses for digital service and tokenized assets this month, Director-General Emomotimi Agama said.

“Being a crypto enthusiast and fintech enthusiast, I can tell you without doubt that this is going to happen sooner than you think,” Agama said in an interview.

“We must support the youths of this country to be able to achieve the benefit that is accruable in fintech. The market size is huge and it is growing.”

The start of regulation aligns Nigeria to other jurisdictions including the European Union, South Africa and Botswana, which have taken steps to govern the asset class.

Nigerian authorities banned banks from supporting crypto transactions due to concerns that traders on digital-currency platforms are manipulating the exchange rate fo the naira, which has depreciated about 70% against the dollar since June last year.

The SEC wants “to provide a platform where people can formerly do these things and we are able to get all of the information that we need,” Agama said. “What we will not encourage is the use of cryptocurrency to manipulate our currency.”