On January 9th, COINOTAG News reported significant developments in Nigeria’s cryptocurrency landscape. Emotimi Agama, the Director-General of the Securities and Exchange Commission (SEC), indicated that certain applicants for licenses among Virtual Asset Service Providers (VASPs) may face rejection due to unmet regulatory stipulations. Notably, in August 2024, the SEC initiated its first licensing initiative via the Accelerated Regulatory Incubation Program (ARIP), awarding licenses to recognized entities like Busha Digital and Quidax Technologies.
Agama emphasized that the VASP registration procedure encompasses not merely onboarding but also ongoing monitoring, educational initiatives, and stringent supervision. The SEC is committed to integrating stakeholder feedback into its processes and may adjust existing regulations in response to constructive critiques. Despite Nigeria’s status as one of the world’s largest cryptocurrency markets, comprehensive legislation specific to digital currencies remains forthcoming. Following recent leadership shifts within the SEC and central bank under President Tinubu’s administration, the SEC aims to spearhead regulatory frameworks for the cryptocurrency sector.