The Nigerian Securities and Exchange Commission (SEC) has granted two crypto-centric firms approval to begin services in the country.
Notably, this initial approval granted to these firms signals a shift in the SEC’s approach towards cryptocurrencies. For context, the Nigerian regulators resisted crypto in the past, despite Nigerians actively participating in the crypto industry.
Meanwhile, this also represents a growing role of digital assets in enhancing the Nigerian economy.
The SEC granted initial approval to these 2 crypto firms to operate in Nigeria:
- Wrapped CBDC Ltd: This crypto-oriented company plans to introduce a stable coin anchored to the Nigerian Naira and is Nigerian-issued. This will facilitate both local and international crypto payments. Also, it promises greater stability compared to volatile cryptocurrencies.
- Blockvault: This crypto firm offers custodian services for crypto and virtual assets. It provides a security infrastructure for holding and managing digital assets.
The SEC States: Initial Approvals for the Crypto Firms Need Full Registration
Currently, these are the only 2 firms that have been granted initial approval by Nigeria’s SEC. However, the SEC stresses that these initial approvals are just a step in the process of complete registration.
Moreover, the SEC’s goal is to enhance consumer protection. This is through careful monitoring of the transparency of each service and product provided by these crypto firms.
Also, the wary approach of the Nigerian regulator emphasizes the SEC’s desire to maintain a well-regulated crypto ecosystem in Nigeria.
A Shift in Regulatory Stance
The shift to a pro-crypto stance is also marked by the Central Bank of Nigeria’s (CBN) recent ban lift. The CBN banned banking transactions involving cryptocurrency and lifting it highlights a significant shift in regulatory stance.
The ban lift and the SEC’s approvals also suggest the country’s efforts to incorporate crypto into the Nigerian financial system.
While noting that the regulatory landscape in the country keeps evolving amidst Nigerians’ participation in a thriving global crypto industry. Collaborating with other crypto businesses and the public will ensure a safe and sustainable digital ecosystem in Nigeria.
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