- Nigeria’s Security and Exchanges Commission (SEC) plans to license Virtual Asset Service Providers (VASPs) amid increasing adoption rates.
- According to the Director-General, Emomotimi Agama, during an interview with Bloomberg, the commission is looking to issue its first licenses for digital services and tokenised assets this month, August.
- He noted that this development is expected to happen sooner than anticipated, aiming to help youth tap into the benefits of fintech. “The market size is huge and it is growing,” he added.
Agama also confirmed that the commission aims to provide a platform for formalising these activities, allowing better access to necessary information.
Meanwhile, he cautioned against using cryptocurrency to manipulate the naira. In June 2024, Agama stated that the country’s crypto market is valued at over $400 million, with a significant portion of the population engaged in trading and transactions.
He confirmed that the volume of Nigeria’s cryptocurrency market is projected to reach $52.5 million by 2028, reflecting a 12.66% increase between 2024 and 2028.
This development comes as the Executive Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, announced a plan to introduce new tax laws, including regulations for the Nigerian crypto industry, by September 2024.
He stressed that since cryptocurrency cannot be ignored in the country, there is a need for legislation to govern such transactions. He reiterated the plan to regulate them in a manner that does not hinder the country’s economic development.
In July 2024, the SEC mandated all VASPs, including cryptocurrency companies, to set up offices in Nigeria as a condition for eligibility under its Accelerated Regulatory Incubation Programme (ARIP).
Before this, the commission announced plans to remove the naira from all peer-to-peer platforms to combat the manipulation of local currency values in the foreign exchange market.
Nigeria has been making moves to regulate the cryptocurrency market, claiming it will reduce naira manipulation. In June 2023, the Securities and Exchange Commission declared Binance’s operations illegal in Nigeria.
