Nigeria's SEC To License Cryptocurrency Exchanges Amid Market Growth
Nigeria has rapidly become one of the fastest-growing crypto economies.
Nigeria’s Securities and Exchange Commission (SEC) is set to issue licenses to cryptocurrency exchanges, a move aimed at regulating and overseeing the burgeoning digital asset market. This decision comes as part of the regulatory update announced in June, which includes new rules for digital asset issuance, offering platforms, exchange operations, and custody.
Nigeria has rapidly become one of the fastest-growing crypto economies. The Central Bank of Nigeria lifted its restrictions on cryptocurrency transactions by banks in December last year, reversing a nearly two-year ban. This shift acknowledged the increasing global demand and adoption of cryptocurrencies, reflecting a broader acceptance of digital currencies in the financial system.
The country’s crypto enthusiasm is notable, with Nigeria being the second-largest economy for crypto adoption and the most crypto-obsessed country based on Google search data in August 2022. However, recent regulatory challenges have affected operations; for instance, cryptocurrency exchange OKX halted Naira withdrawals earlier this year due to regulatory issues, and Binance faced accusations of currency manipulation and money laundering. The SEC aims to formalize the cryptocurrency space in Nigeria, ensuring transparency and preventing misuse.
