Nigeria’s SEC plans to accelerate cryptocurrency licensing in 2025 to establish a regulatory framework for its evolving digital asset market. The SEC has already provided provisional licenses to two startups and aims to issue more soon. The initiative seeks to enhance consumer protection while fostering innovation in the crypto sector, amidst rising security concerns and cautious financial institutions.
The Securities and Exchange Commission (SEC) of Nigeria plans to expedite the licensing of cryptocurrency enterprises starting in 2025. This move is part of an initiative to create a robust regulatory framework for the nation’s expanding digital asset sector. After the commencement of its Accelerated Regulatory Incubation Programme (ARIP) in June 2024, the SEC has issued provisional licenses to two startups, Quidax and Busha, with intentions to grant additional licenses swiftly in the upcoming year.
Nigeria’s cryptocurrency market has seen significant growth as individuals and businesses adopt digital currencies to mitigate inflation and currency exchange rate fluctuations. However, the lack of comprehensive regulation has raised various security concerns, notably regarding scams and transaction inaccuracies. While recent directives from the Central Bank have improved banking access for crypto startups, local financial institutions remain hesitant about fully engaging with them.
The SEC’s new strategy aims to encourage innovation while simultaneously providing stronger consumer protections. This marks a significant departure from Nigeria’s prior opposition to cryptocurrencies, potentially restoring investor confidence in the marketplace. By developing a structured regulatory environment, the SEC hopes to ensure that the crypto community can thrive securely within Nigeria.
In summary, Nigeria’s SEC is preparing to accelerate cryptocurrency licensing in 2025 to establish a secure regulatory framework that addresses the concerns surrounding the digital asset market. This initiative represents a critical development for investor confidence and the protection of consumers, indicating a shift towards a more favorable stance on digital currencies. As the country seeks to harness the potential benefits of cryptocurrencies, it is poised to support innovation while safeguarding its participants.
Original Source: iafrica.com
