Nigeria’s Security and Exchanges Commission (SEC) is gearing up to issue licenses to Virtual Asset Service Providers (VASPs). With the growing interest in digital assets, this move aims to keep up with the pace of crypto adoption by the SEC.
Licensing Crypto Providers
According to SEC’s Director-General, Emomotimi Agama, the first licenses for digital services and tokenized assets are expected this month, August. Agama highlighted that this is happening faster than many anticipated, providing young people with more opportunities to benefit from fintech. He emphasized, “The market size is huge and it is growing,” suggesting a bright future for the crypto space in Nigeria.
Regulating the Crypto Boom
Agama also cautioned against using crypto to manipulate the naira. In June 2024, he mentioned that Nigeria’s crypto market is already valued at over $400 million. As crypto trading grows, the market could hit $52.5 million by 2028, a 12.66% rise from 2024.
In tandem with these developments, Zacch Adedeji, the Executive Chairman of the Federal Inland Revenue Service (FIRS), revealed plans for new tax laws. These regulations, set to roll out by September 2024, will include specific rules for the Nigerian crypto industry. Adedeji stressed the importance of governing crypto without stifling economic growth.
New Conditions for Crypto Companies
In July 2024, SEC required all VASPs, including crypto companies, to establish offices in Nigeria. This is part of their Accelerated Regulatory Incubation Programme (ARIP). The SEC also plans to remove the naira from peer-to-peer platforms, aiming to reduce currency manipulation in the foreign exchange market.
Nigeria’s journey to regulate the crypto market is picking up speed. The SEC’s decision to declare Binance’s operations illegal in June 2023 shows how serious they are about setting the rules for crypto.
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