Nigeria is experiencing significant changes in cryptocurrency regulation. Under President Bola Ahmed Tinubu and the active role of the Securities and Exchange Commission, a new legal framework has emerged for the industry.
Regulatory Changes in Nigeria
In August 2024, Busha Digital and Quidax Technologies became the first companies authorized to operate in Nigeria under the Accelerated Regulatory Incubation Program (ARIP). These licenses underscore Nigeria's intent to establish new standards in the crypto industry and build a sustainable legal foundation.
Registration Process and Role of VASP
Emotimi Agama, Director-General of the Securities and Exchange Commission, Nigeria, noted that the registration process for Virtual Asset Service Providers (VASPs) is comprehensive, including onboarding, monitoring, education, and surveillance. The Commission is open to constructive feedback and ready to amend regulations when valid reasons are presented.
Combating Fraud and Ensuring Security
One of the SEC's major concerns is to prevent fraudulent activities. Recently, Nigeria's Economic and Financial Crimes Commission announced the arrest of 792 individuals during a raid on a building suspected of romance scam operations involving cryptocurrencies.
Nigeria continues to strengthen its position in the global cryptocurrency industry, aiming to become a leader in effective regulation and security in this sphere.
