SEC to launch ‘Crypto Smart, Nigeria Strong’ initiative for stablecoin regulation.
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The Securities and Exchange Commission (SEC) in Nigeria is about to launch the “Crypto Smart, Nigeria Strong” program, which aims to involve developers in co-creating a framework for stablecoin laws.
The commission is taking this action as part of its efforts to increase investor education, draw in reliable participants, and raise digital literacy in the field of digital assetS
In Lagos on Monday, SEC Director-General Emomotimi Agama made this announcement.
Targeting young investors in schools, colleges, and social media, the SEC is launching a Crypto Smart, Nigeria Strong project, the DG stated.
Principal Aims of the Initiative
The goal of the “Crypto Smart, Nigeria Strong” campaign is to educate young investors on the fundamentals of blockchain technology, how to identify fraud, and the importance of
Virtual Asset Service Provider (VASP) licenses and incorporating automated compliance monitoring to attract credible operators while shutting out bad actors.
“Our goal is to attract credible operators while shutting out bad actors by streamlining application timelines, introducing tiered VASP licenses, and incorporating automated compliance monitoring.”
Stablecoin Framework
The commission is actively exploring a framework for Naira-pegged stablecoins, which will be fully backed by verifiable reserves, audited regularly by independent custodians, and used for cross-border trade, payments, and programmable finance.
This framework will allow digital asset innovation to serve real-world economic activity, beyond speculation.
“We are actively exploring a framework for Naira-pegged stablecoins. These will be fully backed by verifiable reserves, audited regularly by independent custodians, and used for cross-border trade, payments, and programmable finance,” he added
“Having a framework will allow digital asset innovation to serve real-world economic activity, not just speculation.”
What You Should Know
Nigeria’s digital assets industry has experienced significant growth, with over 65% of cryptocurrency users under the age of 35.
- These digital natives are often financially excluded or underserved by traditional banking, and digital assets represent a means to save, invest, transact, and create wealth on their terms.
- The SEC is reviewing pathways for digital asset exchange-traded funds (ETFs), custodial wallets for pension funds, and licensed asset managers offering tokenized securities to institutional investors.
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