Nigeriaโs Securities and Exchange Commission has reversed its approach to cryptocurrency by officially welcoming stablecoin firms under a new regulatory framework, marking a significant shift from previous restrictions.
This regulatory change indicates Nigeriaโs strategic pivot toward digital asset innovation, emphasizing market protection while empowering Nigerian citizens. The market reacted with interest, showing potential for increased stablecoin activity.
Nigeria Supports Stablecoins Amid Regulatory Overhaul
Nigeriaโs regulatory stance on cryptocurrencies has shifted significantly with the SECโs announcement. In a move described as a new era for digital innovation, Nigeria is now supporting stablecoin companies through an official framework. This marks a break from last yearโs stringent crypto regulations.
The SEC, led by Emomotimi Agama, is the primary body facilitating this transition, focusing on promoting responsible innovation. Recent measures include the Investment and Securities Act (ISA 2025), differentiating stablecoins from other cryptocurrencies, awaiting a presidential sign-off.
Stablecoin Regulation to Combat Naira Volatility
The regulatory change has potential benefits for Nigeriaโs economy, providing an alternative financial solution amid the nairaโs volatility. This move aims to attract new business, with startups welcome if meeting risk and anti-money laundering requirements as defined by the SEC.
By creating a regulated environment for stablecoins, Nigeria aligns with global economic trends of digital financial inclusion. Analysts believe this could increase liquidity and enhance the stability of the naira, reflecting trends in other emerging economies that opted for similar frameworks.
From Crypto Bans to Regulated Adoption
Previously, Nigeriaโs ban on Binance illustrated skepticism towards cryptocurrencies, linking them to economic instability. This recent policy shift follows a global trend where initial bans are succeeded by regulated adoption, indicating a broader crypto acceptance in developing markets.
Experts from Kanalcoin note that stablecoin adoption in Nigeria could drive renewed fintech innovation. They highlight that Nigeriaโs regulation is positioned to capitalize on digital finance, potentially replicating successful models seen in countries like Kenya and Ghana.
โNigeria is open for stablecoin business, but on terms that protect our markets and empower Nigerians.โ โ Emomotimi Agama, Director-General, Nigeria Securities and Exchange Commission (SEC)
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