Why we approved cryptocurrency in Nigeria - SEC

The Securities and Exchange Commission (SEC) explained that it granted approval in principle to two crypto exchanges recently to give Nigerian youths the opportunity for capital market participation.

The Director General of SEC, Dr Emomotimi Agama, stated this in a statement issued by the Commission on Wednesday.

According to Agama, the decision to approve the crypto exchanges stems from a need to create an inclusive financial ecosystem that leverages the growing interest in digital assets among the country’s younger population.

He added that the initiative aligns with President Bola Tinubu’s vision to engage Nigerian youths more actively in the financial markets.

Aside from the goal of attracting Nigerian youths to participate in the capital market, the SEC DG said the decision was also influenced by global trends.

“These companies, having met the SEC’s stringent fit-and-proper-persons test and other regulatory guidelines, are now part of the regulatory incubation process.

“This process allows the SEC to closely monitor their activities, assess the risks they pose, and ensure they operate within a framework that protects both the economy and individual investors.

“The regulatory incubation program allows us to study these exchanges in detail, understand the risks they might pose, and provide the necessary guidance and regulations to ensure they operate smoothly and ethically.

“We are committed to making sure these platforms operate under regulations comparable to those in other jurisdictions,” Agama explained.

Nigeria’s SEC last Thursday announced that it had granted an Approval-in-Principle to two crypto exchanges Quidax and Busha, giving them the status of legally recognised crypto trading platforms in the country.