Nigeria’s Securities and Exchange Commission (SEC) plans to issue the first licenses to virtual asset providers, including cryptocurrencies. This decision comes in response to increasing demand for cryptocurrency services in the country.
Nigeria’s SEC to License Virtual Asset Providers Soon
A Bloomberg report notes that Nigeria’s SEC would require digital asset issuers, including cryptocurrencies, to secure a license before operating. SEC’s Director-General Emomotimi Agama states that the agency plans to issue its first licenses for digital services and tokenized assets this month. This move responds to the increasing demand for crypto in Nigeria, which has seen significant market growth.
Is Nigeria Ready to Embrace Crypto?
Nigeria has become one of the fastest-growing crypto economies globally. However, for years, Nigerian crypto users were concerned about the country’s tough stance on cryptocurrencies. Nigerian authorities now appear ready to embrace digital activities. Last December, the Central Bank of Nigeria lifted its ban on banks facilitating crypto transactions, recognizing the global rise in crypto adoption. Interestingly, Nigeria was the second-largest economy in terms of crypto adoption and was named the most crypto-obsessed country by Google search data.
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Some Nigerian officials blame cryptocurrencies for the naira’s decline against the dollar over the past year. Central Bank Governor Olayemi Cardoso claims that crypto exchange Binance enabled $26 billion to leave the country last year, which hurt tax revenues. Additionally, Nigeria plans to introduce a bill to tax cryptocurrencies starting from September. The country's tax agency, the Federal Inland Revenue Service (FIRS), is leading this initiative.
The decision to license virtual asset providers in Nigeria reflects the growing interest and acceptance of cryptocurrencies in the country. However, there remain concerns and questions around this area.
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