Nigeria Plans to Introduce Crypto Licensing Process: Bloomberg

As a crypto investor with a keen interest in global trends, I find Nigeria’s recent moves towards regulating the crypto space particularly intriguing, given my personal experiences in the bustling West African market. The surge in adoption of cryptocurrencies in Nigeria, driven by factors like remittances and inflation, is not surprising to me – I’ve witnessed firsthand how digital assets have become a lifeline for many Nigerians seeking financial freedom.

In simpler terms, Nigeria’s Securities and Exchange Commission (SEC) is considering granting licenses to companies dealing with digital assets such as cryptocurrencies. This move comes as the use of these assets becomes increasingly popular in Nigeria, according to a report by Bloomberg published on Tuesday.

According to Director-General Emomotimi Agama, the Securities and Exchange Commission (SEC) could start issuing licenses for digital services and tokenized assets as soon as this month, as reported by Bloomberg.

In response to the rising interest in cryptocurrencies, the regulatory body based in Abuja acknowledges that both the market and its growth are substantial.

Nigeria joins other countries worldwide in the process of regulating cryptocurrency companies. Just recently, South Africa – the continent’s largest economy – instituted a licensing system for crypto businesses. France has introduced a new regulatory framework this month, and the United Kingdom has been registering such firms under its anti-money laundering laws since 2020, pending more detailed rules.

By September, Nigeria intends to propose legislation allowing them to levy taxes on cryptocurrencies. At present, they are taking legal action against crypto exchange Binance, accusing it of tax evasion and money laundering. They have also detained one of its executives in connection with money laundering allegations.

CoinDesk reached out to Nigeria’s SEC for comment.