The Securities and Exchange Commission (SEC) has announced that over 50 blockchain and cryptocurrency organizations have applied for licenses to operate within Nigeria. According to the SEC Director General, Emonotimi Agama, this surge in applications comes after the commission granted approval in principle to two cryptocurrency platforms, Busha Digital Limited and Quidax Technologies Limited. Agama disclosed this during the Business Day Blockchain Conference held in Lagos on Wednesday.
Agama highlighted that the Commission’s regulatory approach to digital assets recognizes the transformative potential of blockchain technology to revolutionize capital markets and drive economic growth in Nigeria. He emphasized that blockchain is no longer just a buzzword but is now a critical component of the global financial and economic landscape. Its decentralized, transparent, and secure nature has led to groundbreaking innovations in various sectors, including finance, healthcare, supply chains, and governance.
At the conference, themed “Building Africa’s Future: Harnessing Blockchain for Economic and Social Transformation,” Agama spoke about the unique opportunities blockchain technology offers in Africa. He noted that the continent faces significant challenges such as financial exclusion, lack of transparency, and inefficiencies in both the public and private sectors. Blockchain, he said, presents an opportunity to address these issues and build a more inclusive future for Africa.
Agama explained that blockchain technology is a digital ledger that securely records and verifies transactions across a distributed network. Once data is recorded in the blockchain, it cannot be altered or deleted, making it tamper-proof and transparent. He also stressed the importance of regulation in ensuring the responsible adoption of blockchain innovations. Contrary to the notion that regulation hinders innovation, Agama argued that it is essential for building a stable and trustworthy environment where innovation can thrive.
The SEC has implemented several initiatives to support responsible innovation, including the Accelerated Regulatory Incubation Program (ARIP) and the Regulatory Incubation (RI) Program. These programs were designed to help digital asset firms test their business models and services in a controlled environment while ensuring consumer protection. Agama cited the approval-in-principle of two digital asset exchanges and the onboarding of five firms as proof of the SEC’s commitment to fostering innovation in a secure manner.
Additionally, the SEC is actively collaborating with international regulatory bodies, such as the International Organization of Securities Commissions (IOSCO), to ensure that its regulatory framework aligns with global best practices. This collaboration is expected to enhance cross-border cooperation and boost investor confidence in Nigeria’s blockchain ecosystem.
Agama also mentioned that the SEC would continue to explore real-world applications of blockchain technology within African businesses and develop regulatory frameworks to support a trustworthy blockchain ecosystem. He emphasized that blockchain offers a significant opportunity to transform Nigeria’s economy, and the SEC remains committed to supporting this transformation with a shared vision and collaborative efforts.
In recent developments, the SEC has granted approval to several firms, including Trovotech Ltd, Wrapped CBDC Ltd, Housing Exchange.NG Ltd, Dream City Capital, and Blockvault Custodian Ltd. These approvals were made possible through the ARIP and RI programs, which were designed to regulate firms operating in the digital asset space before the release of the SEC’s Virtual Asset Service Providers Rules in May 2022.
Agama reiterated that the SEC’s core mandate is twofold: protecting investors and fostering market development. He emphasized that while the commission is open to innovation, businesses must adhere to regulatory and compliance standards to ensure the growth of a stable and sustainable digital economy.
