Nigeria's Securities and Exchange Commission (SEC) is planning to license crypto exchanges, suggesting a step toward official regulation of the booming digital asset industry.

In an interview with Bloomberg, SEC Chief Emomotimi Agama remarked, "Being a crypto enthusiast and fintech enthusiast, I can tell you without doubt that this is going to happen sooner than you think."

He stressed the significance of helping Nigeria's young use fintech, saying, "The market size is huge and it is growing."

Nigerian cryptocurrency acceptance is rising, prompting the SEC's approach.

Despite legal impediments, including a central bank prohibition on crypto transactions via banks, Chainalysis' Global Crypto Adoption Index placed the West African country second in 2023, up from 11th in 2022.

Agama said, "We want to provide a platform where people can formally do these things and we are able to get all of the information that we need." He warned, "What we will not encourage is the use of cryptocurrency to manipulate our currency."

The rule change follows the SEC's June 2023 order for bitcoin exchanges and digital asset dealers to re-register within 30 days or face punishment. The goal is to modify restrictions on digital asset issuance, providing platforms, exchanges, and custody for virtual asset service providers.

The SEC's strategy balances fintech innovation with worries about illegal transactions and currency manipulation. Crypto operators have been unclear because to inconsistent Nigerian government regulations. This legal framework tries to bring clarity.

Nigeria has detained Binance executive Tigran Gambaryan since February, stoking a conflict. Gambaryan's family believes his health is worsening in captivity, but Nigerian authorities disagree.