Nigeria SEC Delays New Crypto Licenses, Citing Need for Extra Due Diligence

The Nigerian Securities and Exchange Commission (SEC) delays the issuance of new crypto licences in a bid to ensure due diligence for the implementation.

Dr Emomotimi John Agama, the Director-General of the SEC, stated that the delay in the crypto licensing is a result of an additional level of due diligence that requires the SEC and other stakeholders’ attention.

The Director-General expressed that the gap in the Investment and Securities Act (ISA) 2025 needs to be addressed before coming out with the provisional licenses. He branded the necessary step as the “level three due diligence”.

Dr Emomotimi further said that the SEC is ensuring that all the steps it takes are in line with the established laws of the country, and global at large.

According to the DG, the SEC will establish ten rules and recommendations, including registration requirements, that will guide the virtual assets service providers (VASPs) to promote transparency and trust. He further emphasized that registration is a hallmark of regulation.

Consequently, the registration will aid the Commission in the crackdown on Ponzi schemes: like the recent collapse of CBEX; which the DG said is illegal because it is not registered in Nigeria; pump and dump tokens, and unregistered digital assets exchanges.

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— Coinwaft (@coinwaft) April 15, 2025

Furthermore, Dr Emomotimi warned social media users, specifically influencers, to be wary of coins they promote, emphatically “meme coins that don’t mean well for the generality of Nigerians.”

In addition, the SEC Director-General called for reasonable and unselfish recommendations from every individual.

ISA 2025 Promotes Fintech Growth, Innovation, and Digital Assets Space

The Director-General added that the ISA 2025 aims to promote fintech companies, foster technological innovations, and specifically the digital assets industry while ensuring regulations compliance.

The provision of regulatory frameworks which enhance transparency and trust in the fintech industry will boost investors’ confidence to go with the process.

Also, strict compliance of the digital assets platforms with the SEC regulations, including registration and reporting of obligations, will aid Anti-Money Laundering (AML) and combat terrorism financing (TF).

In addition, the SEC is working closely with the Central Bank of Nigeria, EFCC, CAC, and other financial sector regulators to ensure a definite operation of the cryptocurrencies.

However, the DG expressed that the Nigerian Securities and Exchange Commission (SEC) is aware of the awaiting challenges in the implementation of the rules and regulations but the Commission welcomes intellectual contributions that will scale through the difficulties.

Nigeria and Other African Countries Prioritize Crypto-Regulated Environment

A 2024 report by Hashed Emergent highlights Nigeria’s rise as a leading Web3 hub in Africa, with over 80 startups raising $130 million and contributing 4% to global Web3 developer growth—the highest in Africa.

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— Coinwaft (@coinwaft) April 15, 2025

Meanwhile, South Africa’s Financial Intelligence Centre (FIC) warned crypto exchanges to strengthen defences against money laundering and terrorist financing.

🚨 BREAKING: THE FINANCIAL SECTOR CONDUCT AUTHORITY (FSCA) OF SOUTH AFRICA HAS ISSUED A WARNING AGAINST UNLICENSED CRYPTO INVESTMENT COMPANIES AFRIINVEST AND MUTUALWEALTH. THESE FIRMS PROMISE UNREALISTIC RETURNS OF UP TO R10,000 PER DAY AND FALSELY CLAIM ENDORSEMENTS FROM PUBLIC… pic.twitter.com/jDWJOf4Afm

— Coinwaft (@coinwaft) April 4, 2025

The FIC highlighted vulnerabilities in the sector and called for stricter KYC measures, reporting of suspicious transactions, and prohibition of anonymity-enhancing tools to put an end to criminal exploitation.

Similarly, Kenya Government enacted Kenya’s Virtual Assets Service Providers Bill 2025 aiming to regulate the crypto market by enforcing licensing, banning mixers or any anonymity-enhancing tool, and requiring transparency in transactions.

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— Coinwaft (@coinwaft) April 9, 2025

All the efforts are tailored to eliminate bad actors from the digital assets industry.