The Securities and Exchange Commission (SEC) of Nigeria clarified that it has not yet granted any crypto licences, refuting claims from various sources that it had given a provisional licence to a prominent crypto platform. The regulator is set to issue its initial licences for digital services and tokenized assets in August, as per reports.
Emomotimi Agama, the Director General of SEC, confirmed via text that no approvals have been granted to any entity yet.
This development marks a significant shift in policy by SEC, which previously discussed the possibility of banning P2P trading, a practice that Nigerian authorities attribute to the volatility in the FX market. A meeting held in May 2024 with crypto industry participants stressed the importance of crypto exchanges discontinuing the use of naira in P2P trading.
Earlier in January 2024, reports indicated that two crypto exchanges, Quidax and Luno, were engaged in discussions with SEC regarding a crypto licence following the lifting of a two-year ban on crypto-related banking transactions by the Central Bank. Both companies chose not to comment at that time.
Since February 2024, Nigerian regulators have intensified scrutiny on crypto exchanges, citing allegations of crypto traders manipulating the naira through P2P trading. The country’s National Security Adviser (NSA) has also categorized crypto trading as a matter of national security concern.
Binance, recognized as the largest crypto exchange globally, has been under regulatory pressure in Nigeria, facing issues related to money laundering and the detainment of one of its executives. Central Bank Governor Olayemi Cardoso alleged that Binance processed $26 billion in untraceable transactions.
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