Ogasabi on 9am news reports that Nigeria’s Securities and Exchange Commission (SEC) is preparing to issue its inaugural license for digital service token assets, including cryptocurrencies. This Breaking news comes as the country sees a surge in the adoption and demand for Bitcoin and other altcoins, despite earlier strict measures by both the Central Bank of Nigeria (CBN) and the SEC. Additionally, 9am news Nigeria highlights that the Federal Inland Revenue Service (FIRS) is set to propose a bill to the parliament in September, aiming to tax cryptocurrency transactions. This development is part of broader reforms designed to generate revenue for the current administration, signaling a pivotal move towards regulating Nigeria’s burgeoning cryptocurrency sector.
By introducing cryptocurrency licensing, Nigeria aligns itself with global best practices, much like the United Kingdom, which in 2020 required companies to register under its anti-money laundering regulations to combat terrorism financing. South Africa’s Financial Sector Conduct Authority (FSCA) has also recently issued a cryptocurrency license, approving over 63 new applications in the second quarter of 2024. Similarly, France has implemented a fresh regulatory framework for cryptocurrencies.
However, analysts are advising the Nigerian government to consider adopting India’s regulatory strategy for dealing with cryptocurrency challenges. This recommendation follows India’s resolution of its dispute with Binance, a cryptocurrency exchange accused of violating operational rules. India’s Financial Intelligence Unit (FIU) fined Binance US$2.25m, required the exchange to register as a reporting entity, and allowed it to resume operations. 9am news Nigeria suggests that Nigeria could benefit from implementing a similar approach to settle its ongoing issues with Binance executives.
