Crypto startups have started applying for the SEC lisence following the Nigerian Central Bank’s reversal a ban on crypto,
In February 2021, The CBN placed a restriction on banks engaging transactions with crypto-related entities.
The ban was lifted in Dec 2023.
The apex bank on lifting the ban introduced guidelines controlling the activities of the crypto market.
In the guidelines, banks are mandated to obtain the bank verification number (BVN) of all directors and owners of crypto businesses that use their services.
The rules also say cryptocurrency companies must secure a license from the country’s capital markets regulator, the SEC.
Crypto Startups eager to make moves
Crypto startups are moving quickly to obtain licenses as ordered by the CBN.
Barely one month after the CBN lifted the ban, two crypto startups have applied for licences from Nigeria’s Security Exchange Commission (SEC).
According to reports, Quidax and Luno, two popular crypto exchanges, have begun speaking to the SEC in October 2023..
Yellow Card, another crypto startup, is also reportedly in talks with the SEC.
Sources privy to the company’s activities confirmed the process is ongoing even though there are no public moves yet.
Yellow Card recently announced a partnership with American crypto exchange platform Coinbase .
This will allow Nigerians and 19 other African countries to use Coinbase’s wallet.
They can also purchase stablecoin (USDC), make remittances, save, and do everyday commerce on the platform.
Effect of the ban lift
While the ban’s lifting eases business for crypto startups, Experts said to not expect any dramatic transformation of the Nigerian Crypto market.
This is because the ban didn’t actually grind crypto transactions to a halt.
The market had found ways around the CBN ban to buy, sell, save, and trade crypto.
However, there are two significant effects of CBN’s reversal of the ban that can not be denied.
- Ease of transaction: With the ban lifted, transactions are now open and free, and definitely as a result, easier
- Validation: by lifting the ban, the CBN has removed the stigma of crypto and digital currencies being associated with scams and fraud.
“It is probably the best thing, if not the only positive aspect, about the CBN’s guidelines.” A former crypto startup founder said.
In December, the CBN lifted stringent regulations that had banned banks from transacting with crypto companies. In its place,
