Nigeria SEC Welcomes Stablecoin Startups Post-Binance Crackdown – A New Era for Crypto?

Nigeria's securities watchdog just flipped the script. Weeks after booting Binance, the SEC is rolling out the red carpet for stablecoin issuers. Talk about a plot twist.

Regulatory whiplash or calculated move? The sudden pivot signals two things: Nigeria wants crypto control—just on its own terms. And stablecoins? They're the golden child now.

Behind the policy whiplash: A nation hungry for dollar-pegged assets amid inflation woes. The SEC's play? Lure compliant crypto firms while keeping volatility at arm's length. Classic 'have-your-cake-and-eat-it' regulation—bankers must be seething.

One cynical footnote: Nothing unites regulators faster than seeing traders bypass local currency chaos with USDT. Naira's loss is crypto's gain—again.

Youth Adoption

Stablecoins — digital tokens typically backed by the U.S. dollar — are gaining popularity among Nigerian citizens, particularly younger demographics seeking alternatives to the weakening naira and rising inflation. These tokens are increasingly used for payments, savings, and cross-border remittances.

“The digital economy in Nigeria is dynamic, youthful, and increasingly decentralised,” Agama said. “We need African solutions for African challenges.”

From Binance Ban to Regulatory Innovation

Nigeria’s current stance follows its 2024 enforcement action against Binance, which authorities accused of illegal foreign exchange activities and linked to the naira’s significant decline against the dollar.

However, with the passage of the Investment and Securities Act (ISA 2025), Nigeria has pivoted toward regulated innovation. The commission is now onboarding firms into its regulatory sandbox — a controlled testing environment for licensed cryptocurrency businesses.

Agama also indicated support for a Nigerian-issued stablecoin that could facilitate African cross-border trade in the future.

This regulatory shift follows earlier initiatives. Nigeria’s central bank had approved the cNGN, a naira-pegged stablecoin, earlier this year to explore blockchain-backed finance. And now with stablecoin regulation picking up globally, Nigeria’s latest MOVE positions it ahead in the race to lead Africa’s digital finance future.

Also Read: Hong Kong to Ban Unlicensed Stablecoin Ads from Aug 1, 2025