Nigeria's Securities and Exchange Commission (SEC) is preparing to issue licenses to cryptocurrency exchanges, marking a significant update to its regulatory framework for digital assets.

This initiative follows the SEC's updated regulations from June, which aimed to enhance oversight of cryptocurrency platforms and exchanges.

SEC Director-General Emomotimi Agama announced that the first licenses for digital services and tokenized assets could be issued as early as this month.

Despite previous governmental restrictions, Nigeria's crypto community continues to thrive, demonstrating a resilient demand for digital currency.

The SEC's licensing initiative is expected to improve market access and enhance consumer protection, aligning Nigeria with global financial trends.

The SEC aims to create a formal platform for cryptocurrency activities while preventing its use for currency manipulation.

In addition to licensing, the government is seeking input from stakeholders, including industry experts and the public, to inform cryptocurrency regulation.

The Federal Inland Revenue Service (FIRS) plans to introduce a new crypto tax law by September 2023 to address existing regulatory gaps.

This proposed law aims to modernize Nigeria’s revenue structure and regulate the burgeoning cryptocurrency industry, which is valued at $400 million.

Recent developments, such as the introduction of a 7.5% VAT on cryptocurrency transactions, have prompted these regulatory changes.

The global community is closely watching how Nigeria balances innovation in the crypto sector with effective regulatory oversight.

Currently, Nigeria is involved in legal actions against the crypto exchange Binance for tax evasion and money laundering, highlighting the need for robust regulations.