Nigerian Crypto Startups Accelerate SEC License Applications Post-CBN Ban Reversal

After Nigeria’s Central Bank lifted a two-year ban on crypto, several Nigerian crypto startups are moving fast to get licenses from the Securities and Exchange Commission (SEC). This shift shows that crypto companies are eager to work with new rules and regulations.

Two well-known crypto exchanges, Quidax and Luno, have started talking to the SEC about getting licenses. Yellow Card is also reportedly in talks with regulators. These actions suggest that crypto startups want to make the most of the positive changes in regulations.

Yellow Card made headlines last week with the announcement of a strategic partnership with Coinbase, a leading American crypto exchange platform. This collaboration opens avenues for Nigerians and individuals in 19 other African countries to utilize Coinbase’s wallet, engage in stablecoin transactions (USDC), facilitate remittances, and conduct everyday commerce on the platform.

Despite the optimism surrounding the lifting of the ban, industry experts remain cautious about expecting an immediate transformation in the Nigerian crypto market. Existing platforms had already found creative ways to circumvent the Central Bank of Nigeria’s (CBN) restrictions. Price sensitivity among Nigerians and concerns about ease of use on certain platforms are highlighted as potential challenges that crypto startups need to address for widespread adoption.

Impact of Regulatory Changes on Nigerian Crypto Startups:

The CBN’s decision to lift stringent regulations, coupled with the introduction of guidelines mandating BVN verification for crypto businesses, has set the stage for increased regulatory compliance.

#CBN Lifts Two-Year Ban on #Cryptocurrency Transactions, Introduces Stringent Regulations for Virtual Assets Services in Nigeria

— Coinwaft (@coinwaft) December 24, 2023

Additionally, cryptocurrency companies are now required to obtain licenses from the SEC, aligning with the SEC’s rules on offering and collecting digital assets issued in May 2022.

In summary, the quick actions of crypto startups to work with regulators show a positive turn for the Nigerian crypto market. This could bring benefits for both businesses and the people using these platforms.