The Nigeria SEC plans to speed up cryptocurrency licensing by 2025 to create a regulatory framework for its digital asset market. The SEC’s Accelerated Regulatory Incubation Programme has initially licensed Quidax and Busha, with more licenses anticipated soon. Despite recent Central Bank support for crypto startups, financial institutions remain cautious due to security risks. The SEC aims to enhance innovation while safeguarding consumers, shifting from a previous anti-crypto position.
The Nigeria Securities and Exchange Commission (SEC) plans to accelerate the licensing of cryptocurrency activities by 2025, establishing a regulatory framework tailored for the burgeoning digital asset market. Following the introduction of its Accelerated Regulatory Incubation Programme (ARIP) in June 2024, the SEC has issued provisional licenses to two firms, Quidax and Busha, and intends to expand this quickly in the upcoming year.
As Nigeria’s cryptocurrency sector flourishes—driven by individuals and businesses utilizing digital currencies to safeguard against inflation and exchange rate instability—the lack of comprehensive regulation has heightened security risks, such as scams and transaction errors. Recent directives from the Central Bank have improved the accessibility of banking services for crypto startups; however, financial institutions maintain a cautious stance towards the sector.
The SEC’s strategy seeks to balance fostering innovation with enhancing consumer protection, representing a significant departure from Nigeria’s former anti-cryptocurrency position. This initiative is poised to bolster investor confidence, reflecting the country’s adaptation to the growing significance of digital assets in the economy.
In summary, the Nigeria Securities and Exchange Commission’s commitment to expedite cryptocurrency licensing in 2025 marks a crucial step toward regulatory clarity in the digital asset sector. This initiative not only addresses existing security concerns but also encourages innovation and improves consumer protection. As Nigeria shifts from a restrictive stance to a more open regulatory approach, investor confidence is anticipated to rise significantly.
Original Source: iafrica.com
