Nigeria’s SEC is reportedly set to license virtual asset service providers.
Reports claim this licensing could begin as early as this month. Let’s explore more about this news related to Nigeria.
Nigeria’s SEC to License Virtual Asset Providers Soon
A Bloomberg report notes that the SEC would require digital asset issuers, including cryptocurrencies, to secure a license before operating. The SEC’s Director-General Emomotimi Agama claims the agency plans to issue its first licenses for digital services and tokenized assets this month. Agama noted that the move responds to increasing demand for crypto in Nigeria, which has seen significant market growth.
Nigeria is joining other countries like South Africa, France, and the U.K. in licensing crypto companies.
Is Nigeria Ready to Embrace Crypto?
Nigeria has become one of the fastest-growing crypto economies globally. However, for years, Nigerian crypto users were concerned about the country’s tough stance on cryptocurrencies. However, Nigerian authorities appear ready to embrace digital activities.
Last December, the Central Bank of Nigeria lifted its ban on banks facilitating crypto transactions. The financial regulator said the adjustment recognized the global rise in crypto adoption. Interestingly, Nigeria was the second-largest economy in terms of crypto adoption and was named the most crypto-obsessed country by Google search data.
Nigeria also plans to introduce a bill enabling it to tax crypto from September. As per local sources, Nigeria’s tax agency, the Federal Inland Revenue Service (FIRS), is leading the charge for the crypto tax bill.
Interestingly, some Nigerian officials blame crypto for the naira’s decline against the dollar over the past year. Central Bank Governor Olayemi Cardoso claims crypto exchange Binance enabled $26 billion to leave the country last year, which hurt tax revenues.
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