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Nigeria’s securities regulator has issued the first operating licenses to two digital asset exchanges: Quidax and Busha Digital. The Securities and Exchange Commission (SEC) has been exploring a regulatory regime for VASPs for years, with the takeover by pro-Bitcoin Director General Emomotimi Agama earlier this year speeding up the process. The regulator says that the move will ensure the country’s youth can leverage the power of digital assets in financial inclusion and get them more involved in the financial market. “It is crucial that we respond to the global trends in digital finance. SEC is committed to ensuring Nigeria remains competitive and innovative in the global financial markets. We are building the necessary talent and infrastructure to manage the challenges and opportunities that these new asset classes present,” stated Agama. Agama acknowledged that many Nigerian youth are already involved in digital asset trading. Any attempts by the government to stifle access to digital assets would only have pushed this group to unregulated and risky platforms where they could lose their money with no legal recourse. Nigeria is Africa’s largest Bitcoin market, trading nearly $5 billion monthly in 2023. It’s also the world’s largest peer-to-peer digital asset market and the fourth-largest recipient of DeFi value, according to Chainalysis. However, the industry has been on the receiving end of a government crackdown that started years ago but intensified this year. Influential government officials, including the central bank governor, have accused exchanges of manipulating the naira, which has taken a nosedive over the past two years. Several offshore exchanges have been forced to shut down, with Binance among the first victims for allegedly orchestrating a “sophisticated heist against the Nigerian economy.” A new era for Nigeria’s digital asset sector Despite the crackdown, Agama reiterated the government’s commitment to pushing digital assets in Nigeria. He…

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Filed under: News - @ September 10, 2024 5:28 pm