Nigeria to Accelerate Cryptocurrency Licensing by 2025

Nigeria’s SEC plans to enhance crypto licensing in 2025, aiming for clear regulation in the digital asset market. Following the launch of the ARIP, two startups have received provisional licenses. The SEC seeks to address security concerns while encouraging innovation and improving investor confidence in Nigeria’s expanding cryptocurrency landscape.

The Securities and Exchange Commission (SEC) of Nigeria is poised to enhance the licensing framework for cryptocurrency activities in 2025, reflecting its commitment to regulating the burgeoning digital asset sector. Launched in June 2024, the Accelerated Regulatory Incubation Programme (ARIP) has issued provisional licenses to two startups, Quidax and Busha, signaling the onset of more licenses expected in the near future.

Nigeria’s cryptocurrency market continues to expand as individuals and businesses increasingly adopt digital currencies to mitigate inflation and currency instability. However, a lack of comprehensive regulations has led to significant security concerns, with risks such as scams and transaction errors becoming prevalent. While the Central Bank of Nigeria’s recent policies have improved access to banking services for crypto startups, many financial institutions remain hesitant.

The SEC’s newly adopted strategy balances innovation with consumer protection, marking a significant departure from Nigeria’s previous opposition to cryptocurrencies. This approach aims to boost investor confidence and create a safer environment for market participants, enhancing the overall stability of Nigeria’s digital asset market.

In summary, the SEC’s initiative to accelerate crypto licensing in Nigeria highlights a crucial shift towards more robust regulation amid a rapidly growing market. By providing clear guidelines and fostering a safer environment, the SEC is promoting innovation while prioritizing consumer protection. This balanced approach not only improves investor confidence but also addresses the security concerns that have hindered the crypto sector’s growth in Nigeria.

Original Source: iafrica.com