Nigeria’s Securities and Exchange Commission (SEC) is set to license Virtual Asset Service Providers (VASPs) amid the increasing adoption of digital assets in the country. It was revealed that the commission plans to issue its first licenses for digital services and tokenized assets in August 2024, a move that could arrive sooner than expected.
This push for regulation coincides with plans announced by the Executive Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, to introduce new tax laws for the Nigerian crypto industry by September 2024. Adedeji stressed the importance of regulating cryptocurrency transactions without hindering the country’s economic development.
As of June 2024, Nigeria’s cryptocurrency market was valued at over $400 million, with a significant portion of the population involved in trading and transactions. The volume of Nigeria’s cryptocurrency market is projected to grow by 12.66%, reaching $52.5 million by 2028.
In a bid to further regulate the sector, the SEC mandated in July 2024 that all VASPs, including cryptocurrency companies, establish offices in Nigeria as part of the Accelerated Regulatory Incubation Programme (ARIP). Additionally, the commission announced plans to remove the naira from peer-to-peer platforms to prevent the manipulation of the local currency in the foreign exchange market.
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