Nigeria’s SEC Tightens Oversight on Crypto Licenses, Warns Non-Compliant Applicants of Rejection While Promising Stakeholder Support and Proactive Regulatory Reforms
Regulator Vows Strict Compliance with VASP Requirements
The Nigerian Securities and Exchange Commission (SEC) has warned that virtual asset service provider (VASP) license applications failing to meet regulatory requirements will be rejected. Speaking during a recent meeting with applicants, SEC Director-General Emomotimi Agama emphasized the need for compliance, while reassuring stakeholders of the commission’s support in navigating the registration process.
Agama’s remarks follow the issuance of Nigeria’s first VASP licenses under the Accelerated Regulatory Incubation Program (ARIP) earlier in 2024. Digital asset platforms Busha Digital and Quidax Technologies were among the first to receive approval to operate within the country.
Balancing Regulation and Collaboration
According to Agama, VASP registration involves more than just onboarding; it encompasses ongoing monitoring, education, and surveillance. However, he highlighted the SEC’s openness to stakeholder feedback, noting that regulations could be adjusted if compelling reasons are presented.
“In the coming year, we will move faster in delivery and announcements, having learnt from this process. A new law has been passed and it is in the process of obtaining Presidential assent,”
Agama said, signaling a proactive approach to regulatory development.
Shaping Nigeria’s Crypto Future
Although Nigeria boasts one of the largest cryptocurrency markets globally, the nation currently lacks dedicated laws or regulations for the sector. The regulatory focus previously fell under the Central Bank of Nigeria (CBN), but recent leadership changes under President Bola Ahmed Tinubu have shifted the SEC into a more prominent role.
Under Agama’s leadership, the SEC aims to position Nigeria as not only a leading crypto market but also a model for effective regulation.
As Nigeria moves toward a clearer regulatory framework, the SEC’s efforts are expected to provide more structure to the crypto industry, fostering innovation while ensuring investor protection.
Join our Channel...