Nigeria’s Securities and Exchange Commission (SEC) has set the record straight, dismissing reports of issuing provisional crypto licenses to major platforms. Instead, the regulator will begin issuing licenses for digital services and tokenized assets in August.
This move marks a significant shift in the SEC’s stance, which previously considered banning peer-to-peer (P2P) trading, blamed for FX market volatility.
In January 2024, crypto exchanges Quidax and Luno were in talks with the SEC for a crypto license, following the Central Bank’s lift on a two-year ban on crypto-related banking transactions.
Since February 2024, crypto exchanges have faced increased scrutiny, with the government accusing traders of manipulating the naira via P2P trading. The National Security Adviser has also classified crypto trading as a national security issue.
Binance, the world’s largest crypto exchange, has faced regulatory challenges in Nigeria, including money laundering allegations and the detention of an executive. The Central Bank Governor has claimed $26 billion in untraceable transactions were processed by Binance.
SEC Director General Emomotimi Agama emphasized, “Approval is yet to be given to anyone,” debunking rumors of issued licenses. The regulator’s August rollout will bring clarity to Nigeria’s crypto landscape.
