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Nigeria’s financial regulators are finally moving forward with licensing virtual asset providers, including those dealing in cryptocurrencies. This is a calculated move to capitalize on the exploding crypto market in the country while trying to keep a lid on the chaos.  The Abuja-based Securities and Exchange Commission (SEC) is set to issue its first licenses for digital service providers and tokenized assets this month.  This aligns with global trends, but it’s more about Nigeria looking out for its own interests as the naira continues to plummet, losing about 70% of its value against the dollar since June last year.  The decision to regulate comes after years of authorities trying to curb crypto’s influence, often using heavy-handed tactics that have frustrated many in the tech-savvy youth demographic. The country has one of the highest rates of crypto adoption globally. What’s new is the government’s decision to stop being so damn uptight about it and start figuring out how to get a slice of the pie.  Director-General Emomotimi Agama of the SEC hinted that the first set of licenses would be handed out sooner than expected. He said that:  “Being a crypto enthusiast and fintech enthusiast, I can tell you without doubt that this is going to happen sooner than you think. We must support the youths of this country to be able to achieve the benefit that is accruable in fintech. The market size is huge and it is growing.” Now, this agreement to regulation didn’t just happen overnight. It’s been brewing for a while, especially after the 2022 crypto market crash that saw prices plummet, leading to a string of bankruptcies and scandals worldwide.  Nigeria is not alone in trying to tame the wild west of digital currencies. The European Union, South Africa, and Botswana have also taken steps to…

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Filed under: News - @ August 20, 2024 3:24 pm