Nigeria’s SEC intends to accelerate crypto licensing by 2025 to establish a regulatory framework for its digital asset market. The initiative follows the launch of the Accelerated Regulatory Incubation Programme, which has provisionally licensed two startups. As cryptocurrency adoption increases, the SEC’s approach aims to enhance both innovation and consumer protection, marking a departure from previous anti-crypto regulations.
The Securities and Exchange Commission (SEC) of Nigeria is poised to accelerate the licensing of cryptocurrency activities beginning in 2025. This initiative aims to create a transparent regulatory framework to accommodate the burgeoning digital asset sector in the country. Since the inception of its Accelerated Regulatory Incubation Programme (ARIP) in June 2024, the SEC has provisionally licensed only two startups, Quidax and Busha, and plans to expedite the licensing process over the next year.
As the Nigerian cryptocurrency market experiences significant growth, driven by individuals and enterprises adopting digital currencies to mitigate inflation and exchange rate fluctuations, the lack of robust regulations has raised concerns regarding security, particularly in terms of potential scams and transaction errors. Although recent directives from the Central Bank have facilitated improved access to banking services for crypto startups, financial institutions continue to exercise caution in their dealings with such entities.
The SEC’s strategic approach seeks to strike a balance between fostering innovation in the cryptocurrency landscape and enhancing consumer protection measures. This represents a noteworthy shift from Nigeria’s historically anti-cryptocurrency stance, which, in turn, aims to bolster investor confidence and create a more resilient market.
In summary, Nigeria’s SEC plans to enhance the licensing of cryptocurrency activities in 2025, addressing security concerns while facilitating growth in the digital asset market. By fostering innovation and consumer protection, the agency aims to rejuvenate investor confidence following previous regulatory challenges. As cryptocurrency adoption surges, this regulatory clarity is anticipated to positively impact the sector moving forward.
Original Source: iafrica.com
