Nigeria's SEC Warns Crypto License Applicants: Meet Registration Requirements or Face Rejection
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Loading... - Gbenga Moses
- 10 Jan 2025
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The Nigerian Securities and Exchange Commission (SEC) has issued a stern warning to applicants seeking licenses as virtual asset service providers (VASPs), emphasizing that failure to meet regulatory requirements will result in application rejections. This cautionary statement was made by the SEC's Director-General, Emotimi Agama, during a recent meeting with prospective licensees.
Agama highlighted that while the SEC is committed to facilitating the registration process, it is crucial for applicants to adhere to the established guidelines. He noted that the registration process for VASPs encompasses not only onboarding but also ongoing monitoring, education, and surveillance to ensure compliance with regulatory standards. The SEC aims to create a robust framework that supports the growth of the digital asset sector while safeguarding investors and the financial system.
The director-general reassured stakeholders that the SEC is open to feedback and may consider amending regulations if valid justifications are presented. “In the coming year, we will move faster in delivery and announcements, having learnt from this process,” Agama stated, indicating a proactive approach to regulatory development.
Agama's warning comes on the heels of the SEC's recent issuance of licenses under the Accelerated Regulatory Incubation Program (ARIP). In August 2024, Nigerian digital asset companies Busha Digital and Quidax Technologies became the first crypto entities to receive official approval to operate in Nigeria, marking a significant milestone in the country’s regulatory landscape.
Despite Nigeria being one of the largest crypto markets globally, the country has historically lacked specific laws or regulations governing cryptocurrencies. Prior to Agama’s appointment, the Central Bank of Nigeria (CBN) played a dominant role in shaping the nation’s crypto policy. However, with the recent changes in leadership under President Bola Ahmed Tinubu, the SEC has taken the lead in regulating the crypto space.
Agama emphasized the SEC's goal of positioning Nigeria not only as a major player in the global crypto market but also as a well-regulated environment for digital assets. This shift in regulatory oversight aims to enhance investor confidence and promote sustainable growth within the sector.
As the SEC continues to refine its approach to crypto regulation, it is clear that the agency is focused on creating a balanced framework that encourages innovation while ensuring compliance and protecting consumers. The emphasis on stakeholder engagement and responsiveness to feedback reflects a commitment to fostering a collaborative regulatory environment.
The SEC's warning to crypto license applicants underscores the importance of meeting regulatory requirements in Nigeria's evolving digital asset landscape. As the country navigates the complexities of crypto regulation, the SEC's proactive stance and willingness to adapt will be crucial in shaping a secure and thriving environment for virtual asset service providers. With ongoing developments and a focus on regulatory clarity, Nigeria is poised to enhance its reputation as a leading player in the global crypto market while ensuring the protection of its investors.
