Nigeria’s crypto scene has been booming, with tons of people using it. But, the government hasn’t been too happy about it.
A New Era of Crypto Regulation?
Now, things might be changing. The Securities and Exchange Commission (SEC) is finally stepping in to regulate the crypto market. They’re planning to issue licenses to crypto exchanges as early as this month. The SEC’s head, Emomotimi Agama, says they want to create a safe space for people to use crypto and get a better understanding of what’s going on. He also wants to help young people in Nigeria benefit from the fintech boom.
A Growing Crypto Market
Nigeria’s crypto market is HUGE. Chainalysis found that the volume of crypto transactions in Nigeria jumped to $56.7 billion in June 2023 alone! Agama thinks that’s just the tip of the iceberg, as many transactions go unreported.
A History of Crackdowns
But, Nigeria hasn’t always been so friendly to crypto. In 2021, the Central Bank of Nigeria (CBN) banned banks from dealing with crypto. They were worried about crypto messing with the value of the naira, their currency. This caused a lot of trouble for crypto users in Nigeria.
Then, in February 2024, the government went after Binance, a popular crypto exchange. They accused Binance of making the naira weaker by speculating and not paying taxes.
A Resilient Community
Despite all the problems, Nigeria’s crypto community is still strong. People keep using crypto, even finding ways to get around the government’s restrictions.
