Emomotimi Agama, director of the Securities and Exchange Commission of Nigeria (SEC), said the country is open to Stablecoin companies that comply with local regulations.
According to a report on Thursday by Cable, a local news outlet for English language, Agama said Nigeria will be welcomed with stubcoin companies that comply with local regulations. “Nigeria is open for the Stablecoin business, but on conditions that protect our markets and empower Nigerians,” he said.
“We have onboarded some companies focused on Stablecoin applications, ensuring compliance with core risk management principles,” Agama said, adding that these companies were recognized through the SEC’s regulatory sandbox.
Agama made a statement at the Nigerian Stab Coin Summit in Lagos on Thursday. During the panel discussion, he said that stubcoin regulation is essential for Nigeria’s development.
Related: Nigeria’s new crypto tax policy may not drive the revenue needed
Nigeria bets on the code
He emphasized that stubcoin regulation is essential for Nigeria’s financial development. “When a history book documentes the financial revolution in Africa, today is remembered as the moment we moved to potential actions,” which reflects recent changes in Nigeria’s approach to cryptographic regulation.
In late May, due to changes in local cryptocurrency regulations, BlockChain.com announced plans to open a physical office in Nigeria, West Africa’s “fastest growing market.” “Nigeria has taken meaningful steps to create a clear framework for crypto,” said Owenize Odia, general manager of Africa at Blockchain.com.
Related: Nigerian courts postpone cases of tax evasion until end of April: Report
Nigeria’s rocky code past
In March, Nigerian Information Minister Mohamed Idris said many crypto companies operating in the country were not facing lawsuits or criminal prosecutions. The enforcement effort “is aimed to strengthen the law rather than crippling everyone, ensuring that no one comes and operates without regulations,” he said.
The statement alleges that Nigeria filed a $81.5 billion lawsuit against Vinance in February, claiming that the exchange caused a crash in Nigeria’s local currency, Naira. Local prosecutors also argued that Vinance is owing $2 billion in back tax as the Nigerian government continues to work on sensible crypto policy.
Despite Nigerian authorities accusing the crypto exchange of responsibility for devaluing local currency, some officials have praised the technology. In a commentary in March, Nigerian Information Minister Mohamed Idris acknowledged that “blockchain technology and other digital assets are no longer at the boundaries of our economy.”
“They are at the heart of how our people trade, create and build,” he added.
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