Nigeria’s SEC has disclosed that the country’s cryptocurrency industry is valued at approximately $400 million, underscoring its significant role despite regulatory uncertainties.
SEC chief Emomotimi Agama highlighted this valuation during a recent press conference, emphasizing the country’s vibrant crypto market amidst ongoing regulatory challenges. Despite Nigeria’s central bank previously restricting banks from facilitating crypto transactions, the sector has continued to thrive, ranking prominently on global adoption indices.
Agama noted that Nigeria ranked 11th on the 2022 Global Crypto Adoption Index, a position that improved to second place in 2023. This growth occurred despite regulatory scrutiny and accusations against crypto exchanges for facilitating illicit activities and forex manipulation.
A substantial portion of Nigeria’s population, estimated at 33.4%, actively participates in cryptocurrency trading and transactions, demonstrating widespread adoption despite regulatory ambiguity.
Agama reiterated concerns about the lack of a robust regulatory framework, highlighting its adverse effects on the economy and leaving operators and traders susceptible to cybersecurity threats. He emphasized that the absence of clear regulations fosters uncertainty, potentially deterring both investors and innovators from engaging fully in the crypto market.
In response to these challenges, the SEC recently mandated cryptocurrency exchanges and digital asset traders to re-register their businesses within 30 days. This move aims to enhance regulatory oversight and amend existing rules concerning digital assets issuance, trading platforms, exchanges, and custody services provided by virtual asset service providers (VASPs).
Despite these regulatory hurdles, Nigeria’s crypto industry remains resilient, with stakeholders advocating for clearer guidelines to foster growth while mitigating risks associated with cyber threats and financial illiteracy among the populace.
The valuation of Nigeria’s cryptocurrency industry at $400 million underscores its economic significance and potential for growth, contingent upon effective regulatory frameworks that balance innovation with investor protection in the evolving digital economy.
