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Nigeria’s leading financial regulator, the Securities and Exchange Commission (SEC), is set to revolutionize the fintech landscape by issuing licenses for cryptocurrency and tokenized asset providers. Director-General Emomotimi Agama emphasized the move as a strategy to leverage growing market opportunities and enhance investor protection. The initiative marks a significant shift towards aligning with global jurisdictions such as the EU and South Africa, which already regulate this vibrant asset class.
Despite previous bans on banks from facilitating crypto transactions and recent government actions against major crypto exchanges, the youth and tech innovators in Nigeria have continued to engage robustly with digital currencies. This resilience is reflected in a 9% increase in crypto transaction volumes over the past year, underscoring the potential of digital finance in the region.
By introducing formal regulations, the SEC aims to harness the full potential of fintech while safeguarding the economy and ensuring transparency. This approach will deter misuse of cryptocurrencies and support the country’s economic growth by tapping into the untapped potential of virtual assets.
