Nigeria's Securities and Exchange Commission (SEC) has approved the regulation of stablecoins under the Investment and Securities Act 2025, establishing the first clear regulatory framework for these digital assets in Africa.
New Stablecoin Regulatory Framework
The new regulatory framework, developed by Nigeria's SEC, allows both domestic and international stablecoin issuers to operate under established norms, including compliance, reserve, and licensing obligations. This creates an open market environment for digital assets.
Role of Dr. Emomotimi Agama
At the forefront of this initiative is Dr. Emomotimi Agama, who is leading the stablecoin regulatory agenda. The Central Bank of Nigeria will now focus on payment systems, transferring oversight of stablecoins to the SEC.
Financial Implications and Market Expectations
The financial implications of this move may include increased on-chain stablecoin transactions, especially amid the volatility of the Nigerian Naira, driving demand for dollar-backed digital assets. The SEC aims to align its practices with international standards.
Regulating stablecoins in Nigeria may enhance financial market transparency and increase confidence in controlled digital assets. This is a significant step following the country's cautious approach to cryptocurrencies.
