- Licensing Initiative: Nigeria’s Securities and Exchange Commission (SEC) is preparing to license issuers of virtual assets, including cryptocurrencies, in response to the surge in adoption within the country.
- Global Alignment: This initiative positions Nigeria alongside other nations, such as South Africa, France, and the U.K., which have already begun regulating the crypto industry through licensing regimes.
- Tax and Legal Action: Nigeria plans to introduce a bill by September that will enable the taxation of crypto assets. Concurrently, the country is pursuing legal action against Binance for alleged tax evasion and money laundering, with one executive currently in prison.
Nigeria is taking significant steps toward regulating its rapidly growing cryptocurrency market. The Securities and Exchange Commission (SEC) of Nigeria announced plans to license issuers of virtual assets, including cryptocurrencies, as early as this month, according to a report by Bloomberg. SEC Director-General Emomotimi Agama confirmed the move, which comes amid a surge in crypto adoption in the West African nation.
This licensing initiative aligns Nigeria with a global trend of regulating the cryptocurrency sector. South Africa, the continent’s largest economy, recently implemented a crypto licensing regime. France introduced similar regulations earlier this month, while the U.K. has been registering crypto companies under its anti-money laundering rules since 2020, as it prepares for more comprehensive legislation.
In addition to the upcoming licensing, Nigeria is also preparing to introduce a bill by September that would enable the taxation of cryptocurrency assets. Meanwhile, the country has taken legal action against Binance, one of the world’s largest crypto exchanges, suing the platform for tax evasion and money laundering. An executive from Binance is currently in custody on charges related to these allegations.
This series of regulatory measures highlights Nigeria’s commitment to bringing its cryptocurrency industry under a formal regulatory framework, ensuring that it aligns with global standards while addressing the challenges posed by the rapid growth of digital assets.
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