Nigeria’s Securities and Exchange Commission (SEC) has said it is yet to issue crypto licences, dismissing reports from several publications that it approved a provisional licence to a major crypto platform. The regulator will issue its first licences for digital service and tokenized assets in August, Bloomberg reported on Tuesday.

“Approval is yet to be given to anyone,” SEC Director General Emomotimi Agama told TechCabal via text.

The move suggests a major policy turnaround from the SEC which has talked up banning P2P trading which Nigerian authorities blame for the volatility in the FX market. In May 2024, the SEC DG met with crypto industry players and reiterated the need for crypto exchanges to delist naira from P2P trading. 

In January 2024, TechCabal reported that at least two crypto exchanges—Quidax and Luno—were in talks with the SEC over a crypto licence after the Central Bank lifted a two-year ban on crypto-related banking transactions. Both companies declined to comment at the time. 

Since February 2024, crypto exchanges have faced increased scrutiny from Nigerian regulators. The government accused crypto traders of using P2P trading to manipulate the naira. Nigeria’s National Security Adviser (NSA) also classified crypto trading as a national security issue.

Binance, the world’s largest crypto exchange, has been at the center of a regulatory clampdown in Nigeria with the company facing money laundering challenges and one of its executives detained. Central Bank Governor Olayemi Cardoso claimed $26 billion in untraceable transactions were processed by Binance. 

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