‘To support youths’ — SEC to license cryptocurrency firms

The Securities Exchange Commission (SEC) says it plans to license providers of virtual assets — including cryptocurrencies — to tap opportunities and protect investors as adoption rates surge in Nigeria.

Speaking during an interview with Bloomberg, Emomotimi Agama, SEC’s director-general, said the commission intends to issue first licences for digital service and tokenised assets this month.

“Being a crypto enthusiast and fintech enthusiast, I can tell you without doubt that this is going to happen sooner than you think,” Agama said.

“We must support the youths of this country to be able to achieve the benefit that is accruable in fintech. The market size is huge and it is growing.”

Agama said the SEC wants to provide a platform where people can formerly “do these things, and we are able to get all of the information that we need”.

“What we will not encourage is the use of cryptocurrency to manipulate our currency,” Agama said.

In December 2023, the Central Bank of Nigeria (CBN) lifted the ban on cryptocurrency transactions.

Months after, the federal government clamped down on Binance, a crypto exchange over “regulatory breaches”.

The SEC, in May, announced plans to delist naira from all peer-to-peer (P2P) platforms — including Binance.

The commission said the decision was taken to avoid the level of “manipulation” happening in the cryptocurrency space.

In June, Agama said Nigeria’s cryptocurrency market is worth over $400 million.

He said the volume of crypto transactions in Nigeria would hit $52.5 million in 2028, indicating a 12.66 percent increase between 2024 and 2028.