SEC of Nigeria: 45% of the Country's Residents Use Cryptocurrencies
Date: 2024-07-01 Author: Gabriel Deangelo Categories: IN WORLD
Nigeria Cryptocurrency Market Growth Forecasts
The local regulator predicted significant growth in the cryptocurrency market in Nigeria. The country's cryptocurrency market is projected to reach $52.5 million in four years, according to Nigeria's Securities and Exchange Commission (SEC). SEC Director-General Emomotimi Agama said this at the annual conference of the Capital Markets Association of Nigeria (ACMAN).
According to the latest data, about 45% of the Nigerian population uses or owns cryptocurrency. This translates to over 90 million people, making Nigeria the country with the highest usage and ownership of cryptocurrencies worldwide. The country's significant involvement in cryptocurrencies is due to various factors, including economic instability and a large number of technologically savvy young people seeking alternative financial systems.
Moreover, awareness of cryptocurrencies in Nigeria is exceptionally high: 99% of Nigerians are aware of cryptocurrencies and 70% understand the fundamental concepts of blockchain. This widespread adoption and adoption of cryptocurrencies reflects Nigeria's position as a leading digital asset market and hub for cryptocurrency activity.
Importance of Regulation
Agama emphasized the importance of regulating the crypto industry to ensure its sustainable development. He noted that cryptocurrencies have the potential to facilitate fast and inexpensive payments, but a clear regulatory framework needs to be created to maximize their benefits and minimize risks.
Despite the significant benefits of cryptocurrencies, Agama acknowledged there are a number of problems associated with their use. Among them, he highlighted regulatory uncertainty, low financial literacy of the population and security problems. The head of the SEC emphasized the need for a balanced approach to the cryptocurrency industry to reduce risks and protect investors.
Measures to Improve the Situation
In his testimony, the SEC representative pointed to the need to improve cybersecurity measures and financial education. He stressed that these steps are necessary to protect investors and promote a “healthy digital asset market.”
Emomotimi Agama was appointed as head of the SEC in April 2024. Previously, he served as Managing Director of ACMAN.
Interest in Cryptocurrencies in Nigeria
At the beginning of June, Nigeria became the leader in the level of interest in Bitcoin, even surpassing El Salvador, where the first cryptocurrency was recognized as an official means of payment. In March, the local regulator published recommendations for virtual asset service providers, proposing to increase registration fees by 400%.
In May, fintech firms began blocking customer accounts for crypto-asset transactions, triggering regulatory pressure on Binance, one of the largest crypto exchanges in Nigeria. This highlights the need for balanced regulation to ensure the stable development of the cryptocurrency market in the country.
The local regulator predicted significant growth in the cryptocurrency market in Nigeria. The country's cryptocurrency market is projected to reach $52.5 million in four years, according to Nigeria's Securities and Exchange Commission (SEC). SEC Director-General Emomotimi Agama said this at the annual conference of the Capital Markets Association of Nigeria (ACMAN).
According to the latest data, about 45% of the Nigerian population uses or owns cryptocurrency. This translates to over 90 million people, making Nigeria the country with the highest usage and ownership of cryptocurrencies worldwide. The country's significant involvement in cryptocurrencies is due to various factors, including economic instability and a large number of technologically savvy young people seeking alternative financial systems.
Moreover, awareness of cryptocurrencies in Nigeria is exceptionally high: 99% of Nigerians are aware of cryptocurrencies and 70% understand the fundamental concepts of blockchain. This widespread adoption and adoption of cryptocurrencies reflects Nigeria's position as a leading digital asset market and hub for cryptocurrency activity.
Importance of Regulation
Agama emphasized the importance of regulating the crypto industry to ensure its sustainable development. He noted that cryptocurrencies have the potential to facilitate fast and inexpensive payments, but a clear regulatory framework needs to be created to maximize their benefits and minimize risks.
Despite the significant benefits of cryptocurrencies, Agama acknowledged there are a number of problems associated with their use. Among them, he highlighted regulatory uncertainty, low financial literacy of the population and security problems. The head of the SEC emphasized the need for a balanced approach to the cryptocurrency industry to reduce risks and protect investors.
Measures to Improve the Situation
In his testimony, the SEC representative pointed to the need to improve cybersecurity measures and financial education. He stressed that these steps are necessary to protect investors and promote a “healthy digital asset market.”
Emomotimi Agama was appointed as head of the SEC in April 2024. Previously, he served as Managing Director of ACMAN.
Interest in Cryptocurrencies in Nigeria
At the beginning of June, Nigeria became the leader in the level of interest in Bitcoin, even surpassing El Salvador, where the first cryptocurrency was recognized as an official means of payment. In March, the local regulator published recommendations for virtual asset service providers, proposing to increase registration fees by 400%.
In May, fintech firms began blocking customer accounts for crypto-asset transactions, triggering regulatory pressure on Binance, one of the largest crypto exchanges in Nigeria. This highlights the need for balanced regulation to ensure the stable development of the cryptocurrency market in the country.
