From Nigeria The cryptocurrency market has surpassed $400 million despite significant regulatory uncertainties, said Securities and Exchange Commission Director General Emomotimi Agama.
According to a statement, the SEC Director General disclosed this recently during the 2024 Annual Conference of the Nigerian Capital Market Scholars Association in Abuja.
Agama also highlighted the challenges and potential of crypto assets in Nigeria's economic landscape.
He said: “Reports indicate that Nigeria's cryptocurrency transaction volume reached $56.7 billion between July 2022 and June 2023, representing a year-on-year growth of nine percent.
"The country's cryptocurrency market is estimated to be worth more than $400 million, with a significant portion of the population participating in cryptocurrency trading and transactions."
Agama highlighted that cryptocurrency transactions in Nigeria reached $56.7 billion between July 2022 and June 2023, reflecting a strong adoption rate despite economic challenges.
It noted that approximately 33.4 percent of Nigerians were actively involved in cryptocurrency trading and transactions, indicating strong market penetration.
According to the SEC Director General, regulatory uncertainty, security concerns and financial literacy seriously threaten the use of cryptocurrencies.
“The lack of a comprehensive regulatory framework has created uncertainty, which can deter both investors and innovators. Cybersecurity threats, including hacking and fraud, pose significant risks.
“A significant portion of the population lacks adequate financial knowledge, which makes them vulnerable to scams and risky investments,” he explained.
Nigeria is grappling with how to effectively regulate the country’s rapidly growing cryptocurrency market, balancing the need for innovation and financial inclusion with concerns over financial stability and illicit activities.
In February, the Central Bank of Nigeria expressed concern over the large volume of transactions passing through crypto exchange platforms from unidentified sources.
The central bank said it was working with other government agencies to tackle such illicit financial activities.
The bank said $26 billion passed through Binance Nigeria last year from unidentified sources.
As a result, over the past three months, cryptocurrency trading platforms have come under scrutiny on suspicion that they were manipulating the value of the local currency in the foreign exchange market.
This eventually led to the departure of Binance, the largest cryptocurrency platform, from the country and the exclusion of the naira from P2P platforms.
Last month, the IMF urged Nigeria to establish a robust regulatory framework to oversee the growing cryptocurrency market.
The most recent regulation by the Nigerian SEC was to issue a 30-day deadline for all cryptocurrency companies and businesses to re-register under its new regulatory regime.
