The Securities and Exchange Commission (SEC) of Nigeria has announced the 'Crypto Smart, Nigeria Strong' initiative, aiming to develop a regulatory framework for stablecoins. This initiative seeks to engage developers in co-creating regulations that ensure market integrity and protect investors.
Dr. Emomotimi Agama, Director-General of the SEC, emphasized the importance of collaboration, innovation, and trust in shaping Nigeria's digital asset ecosystem. He highlighted the need for a regulatory environment that supports responsible decentralized finance (DeFi) while safeguarding the interests of all stakeholders.
The SEC is also enhancing its licensing architecture to attract credible operators and deter bad actors. This includes streamlining application processes, introducing tiered Virtual Asset Service Provider (VASP) licenses, and incorporating automated compliance monitoring.
Additionally, the SEC is actively developing a framework for Naira-pegged stablecoins, which will be fully backed by verifiable reserves and audited regularly by independent custodians. These stablecoins are intended to facilitate cross-border trade, payments, and programmable finance, serving real-world economic activities beyond speculation.
This proactive approach by the SEC underscores Nigeria's commitment to integrating digital finance innovations into the formal economy, aiming to boost financial inclusion and enhance the country's position in global digital trade.