SEC unveils crypto smart initiative to shape stablecoin rules
The Securities and Exchange Commission (SEC) of Nigeria is preparing to unveil the Crypto Smart, Nigeria Strong initiative, which aims to partner with developers to create a regulatory structure for stablecoins.
This initiative is a component of the SEC’s larger initiatives to draw responsible players, enhance investor education, and improve digital literacy in the realm of digital assets.
This announcement was made by the SEC's Director-General, Emomotimi Agama, in Lagos on Monday.
“The SEC is initiating the Crypto Smart, Nigeria Strong initiative, which focuses on engaging young investors in schools, universities, and on social media, providing education,” the DG stated.
The Crypto Smart, Nigeria Strong initiative is designed to educate young investors—through educational institutions and social media—on fundamental blockchain concepts, recognizing scams, and the significance of investing for the long term.
“It aims to teach essential blockchain concepts, how to identify scams, and the benefits of long-term investing,” he mentioned.
Through this initiative, the SEC seeks to encourage responsible innovation and safeguard investors within the digital assets arena.
“The success of Nigeria’s digital assets ecosystem relies on three foundational elements: Collaboration, Innovation, and Trust. The path we foresee entails regulatory progress through an enhanced licensing framework. We are improving our licensing system to be more effective, more transparent, and risk-oriented,” Agama explained.
The SEC is refining its licensing framework to enhance efficiency, transparency, and a risk-based approach.
To support this initiative, it intends to introduce tiered licenses for Virtual Asset Service Providers and employ automated compliance monitoring, with the goal of attracting reputable operators while discouraging bad actors.
“Our aim is to bring in trustworthy operators while eliminating bad actors by simplifying application processes, launching tiered VASP licenses, and implementing automated compliance checks,” he continued.
The commission is working on a regulatory framework for Naira-pegged stablecoins that will be entirely supported by verifiable reserves and will undergo regular audits by independent custodians.
These stablecoins will facilitate cross-border transactions, payments, and programmable finance, fostering digital asset innovation that propels actual economic activity rather than just speculation.
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