The Securities and Exchange Commission (SEC) on Wednesday, August 21, 2024, denied issuing licences for cryptocurrency platforms, countering recent reports that suggested a major crypto platform had received provisional approval.
Bloomberg had on Tuesday, August 20, 2024, reported that the SEC planned to issue its first licences for digital services and tokenised assets in August.
However, TechCabal, in a report on Wednesday, August 21, 2024, said SEC’s Director General, Emomotimi Agama, clarified that no such approval has been granted.
This statement signals a significant policy stance from the SEC, which has been vocal about its concerns over peer-to-peer (P2P) crypto trading, a practice Nigerian authorities blame for contributing to the volatility in the foreign exchange market.
In May, SEC’s DG met with key figures in the cryptocurrency industry, emphasising the need for exchanges to remove the naira from P2P trading platforms.
In January 2024, TechCabal also reported that at least two cryptocurrency exchanges, Quidax and Luno, were in discussions with the SEC regarding obtaining a crypto licence after the Central Bank of Nigeria lifted a two-year ban on crypto-related banking transactions.
Both companies declined to comment on the matter at the time.
Since February 2024, Nigerian regulators have intensified scrutiny on crypto exchanges, accusing traders of using P2P platforms to manipulate the naira. The National Security
Adviser also classified cryptocurrency trading as a national security issue.
The global crypto giant Binance has been particularly affected by Nigeria’s regulatory crackdown, facing allegations of money laundering and the detention of one of its executives.
Also, the CBN governor, Olayemi Cardoso, alleged that Binance processed $26 billion in untraceable transactions, raising further concerns within the government.
As the situation unfolds, the SEC’s stance suggests a cautious approach to licensing in the cryptocurrency sector, reflecting broader concerns about the impact of digital currencies on Nigeria’s economy and national security.
