Preparing your Trinity Audio player. . . Following the expulsion of unlicensed offshore digital asset exchanges and a crackdown on local operators, Nigeria is once again embracing the digital asset sector, attracting attention from global industry leaders. The newest major player entering Nigeria is Blockchain. com, a UK-based exchange and wallet platform boasting 37 million users and over 85 million wallets created since 2011. Valued at $14 billion during its 2022 funding round, the company attributes its expansion in Nigeria to the country’s improving regulatory environment. According to Owenize Odia, Blockchain. com’s general manager for Africa, Nigeria is the company's fastest-growing market in the region. “Nigeria has made significant progress toward establishing a clear regulatory framework for crypto, ” Odia said. “Obtaining a crypto-exchange license in Nigeria is a top priority for us. ” Nigeria has long been Africa’s largest digital asset market, though the government has taken actions contrary to the sector’s growth. For example, the central bank banned commercial banks from processing transactions related to digital assets for years—a ban later overturned by the courts.

Additionally, the central bank has consistently discouraged citizens from engaging with digital assets. More recently, Nigeria’s Securities and Exchange Commission (SEC) revealed it is reviewing license applications from several platforms, including Yellow Card, and plans to issue new licenses later this year. “For us, it is a learning process; our goal is to study and observe what these platforms do, how they operate, and the risks involved. We are working to develop and train more personnel to build regulatory capacity for digital assets, ” said SEC Chair Emomotimi Agama. Beyond Nigeria, Blockchain. com plans to expand into Ghana, South Africa, and Kenya—major African hubs for digital assets. Among these, South Africa has the most developed Bitcoin regulations and has licensed over 200 virtual asset service providers (VASPs), the highest total on the continent. However, even in South Africa, industry participants acknowledge significant progress is still needed. In March, local exchanges urged regulators to classify digital assets as onshore assets, a change that could unlock billions in capital and spur further growth. Watch: Blockchain is transforming Nigeria’s tech city ecosystem