Nigerian SEC set to issue Cryptocurrency Platform Licenses as adoption rate surges
Nigeria’s Securities and Exchange Commission (SEC), in an interview on Bloomberg Television, announced plans to issue licenses to cryptocurrency exchanges in the country.
In an effort to support the nation's expanding use of cryptocurrencies, the Nigerian SEC, led by Director-General Emomotimi Agama, has disclosed its plan to grant licenses to cryptocurrency exchanges operating there.
"As a fintech and cryptocurrency enthusiast, I can tell you without doubt that this is going to happen sooner than you imagine," Agama said in the interview.
“The fintech and crypto market size is huge and growing. Hence, we must provide support to the young people of Nigeria in order to achieve the benefits associated with fintech,” Agama added.
Director-General Emomotimi Agama stated that this month, the Securities and Exchange Commission, situated in Abuja, plans to grant its first licenses for digital services and tokenized assets.
The head of the SEC clarified in the interview that the organization's goal is to offer a platform for transparent cryptocurrency transactions free from fraudulent people.
"People can do these things formally on a platform that the SEC wants to provide, and we can obtain all the information we require." The use of cryptocurrencies to manipulate our currency is something we will not support, according to Agama.
The post also stated that as the country's adoption rates rise, the SEC intends to license businesses that provide virtual assets, such as cryptocurrencies, in order to seize opportunities and protect investors.
The SEC announced its intentions to regulate the emerging asset class in June and revised its rules on digital asset issuance, exchange, offering platforms, and custody. It is expected that the amendment process will enhance the regulatory landscape.
Nigeria has become one of the crypto economies with the fastest rate of growth in recent years. After prohibiting lenders from using digital currencies for almost two years, the Central Bank of Nigeria removed restrictions on Nigerian banks' ability to facilitate cryptocurrency transactions in December of last year.
The Nigerian government recently declared its intention to enact new tax laws by September that will include guidelines for the nation's cryptocurrency market. According to Dr. Zacch Adedeji, the Executive Chairman of Nigeria's Federal Inland Revenue Service (FIRS), the bill, which aims to tax the cryptocurrency industry, will be presented to parliament for approval.
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