Nigeria’s Securities and Exchange Commission (SEC) is set to ramp up the licensing of crypto activities in 2025, aiming to establish a clear regulatory framework for the country’s growing digital asset market. Since launching its Accelerated Regulatory Incubation Programme (ARIP) in June 2024, the SEC has already issued provisional licenses to only two startups – Quidax and Busha – and plans to issue additional licenses rapidly in the coming year. With Nigeria’s crypto market booming as individuals and businesses use digital currencies to hedge against inflation and exchange rate volatility, the absence of robust regulation has raised significant security concerns, including risks from scams and transaction errors. Although recent Central Bank directives have allowed crypto startups improved access to banking services, financial institutions remain cautious. The SEC’s balanced approach aims to foster innovation while enhancing consumer protection, marking a pivotal shift from Nigeria’s previous anti-crypto stance and boosting investor confidence.
Source: Techcabal