The Securities and Exchange Commission of Nigeria has threatened to take enforcement actions against companies operating cryptocurrency trading platforms without authorization from the regulator. The Director-General of the SEC, Dr. Emomotimi Agama, clarified the agency’s position, stating that the Nigerian cryptocurrency market will not be allowed to position unregulated agents, as the agency seeks to safeguard the local investors from operations that may swindle.
Dr. Agama noted that every platform providing services in the context of digital assets must be compliant with regulatory requirements. He said, “We are likely to exercise enforcement measures as far as anyone who wants to operate in this market with the intention of not being regulated is concerned. We will not allow people who do not wish to be regulated to operate in the space we control.”
Also Read: Nigeria’s Crypto Market Faces Turmoil as Regulatory Crackdowns and International Exodus Intensify
Quidax and Busha Get Licenses while Scammers Flood the Market
Earlier this year, the SEC gave a green light to two digital asset trading firms, namely Quidax and Busha. These are the only platforms legally permitted to operate in Nigeria. This move was necessitated by the fact that the youth in Nigeria are turning to cryptocurrencies. Agama also states that Quidax and Busha have been approved after a mandatory review of their operations; they passed in the aspect of AML and CFT measures necessary for approval.
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Other exchanges have also submitted their applications to the SEC, but only those strictly adhering to the rules and regulations will be considered. The regulator is keen to ensure that all these platforms operate in the light of the law and provide complete information on such essential financial safety measures.
The SEC is also concerned with combating fraud and defending investors against scams and Ponzi schemes involving digital assets. In that regard, the commission’s task is to closely follow the sector’s evolution to ensure that no disruption to the Nigerian economy occurs and that innovation is encouraged in a controlled manner.
In conclusion, the SEC is headed in the right direction with a clear implementer of enforcing regulations in the burgeoning cryptocurrency market in Nigeria to guard investors against various risks and stabilize the economy.
Also Read: Nigeria Legal Case Involving Binance: Trial Stalled by Executive’s Health Issue
Maxwell Mutuma
Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. He writes extensively on topics such as blockchain, cryptocurrency, tokens, and more for top publications such as Coingape, Coin Edition, and The Coin Republic. His goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.