The Securities and Exchange Commission (SEC) in Nigeria is set to launch the ‘Crypto Smart, Nigeria Strong’ initiative, aimed at engaging developers in co-creating a framework for stablecoin regulations.
This move is part of the commission’s efforts to attract credible players, enhance investor education, and improve digital literacy in the digital assets space.
This was disclosed by the Director-General of SEC, Emomotimi Agama, in Lagos on Monday.
“SEC is launching a Crypto Smart, Nigeria Strong initiative, targeting young investors across schools, universities, and social media, teaching,” the DG said.
The ‘Crypto Smart, Nigeria Strong’ initiative will focus on teaching young investors across schools, universities, and social media platforms about basic blockchain principles, how to spot scams, and the value of long-term investing.
“It aims to cover basic blockchain principles, how to spot scams, and the value of long-term investing.”
By doing so, the SEC aims to promote responsible innovation and protect investors in the digital assets ecosystem.
“The future of Nigeria’s digital assets ecosystem depends on three pillars: Collaboration, Innovation, and Trust. The road we see ahead is regulatory evolution through an expanded licensing regime. We are enhancing our licensing architecture to make it more efficient, more transparent and more risk-based,” Agama said.
The SEC is working to enhance its licensing architecture, making it more efficient, transparent, and risk-based. This includes introducing tiered
Virtual Asset Service Provider (VASP) licenses and incorporating automated compliance monitoring to attract credible operators while shutting out bad actors.
“Our goal is to attract credible operators while shutting out bad actors by streamlining application timelines, introducing tiered VASP licenses, and incorporating automated compliance monitoring.”
The commission is actively exploring a framework for Naira-pegged stablecoins, which will be fully backed by verifiable reserves, audited regularly by independent custodians, and used for cross-border trade, payments, and programmable finance.
This framework will allow digital asset innovation to serve real-world economic activity, beyond speculation.
“We are actively exploring a framework for Naira-pegged stablecoins. These will be fully backed by verifiable reserves, audited regularly by independent custodians, and used for cross-border trade, payments, and programmable finance,” he added
“Having a framework will allow digital asset innovation to serve real-world economic activity, not just speculation.”
Nigeria’s digital assets industry has experienced significant growth, with over 65% of cryptocurrency users under the age of 35.
Nigeria’s digital assets industry has experienced significant growth, with over 65% of cryptocurrency users under the age of 35.
With Nigeria’s pension fund assets capped at N16 trillion, this move is expected to unlock long-term capital and bring credibility and stability to the sector.