The Securities and Exchange Commission (SEC) has announced plans to initiate enforcement actions against individuals and businesses operating in cryptocurrency without proper regulatory oversight. This step follows the approval of two crypto exchanges under its supervision.
According to local reports, SEC Director-General Dr. Emomotimi Agama emphasized the Commission’s commitment to protecting investors and ensuring that market participants adhere to regulatory frameworks.
Focus on Regulatory Compliance
Dr. Agama underscored the importance of compliance in the crypto market. With the rapid growth of digital assets, the SEC aims to create an environment where innovation can thrive while safeguarding investor interests. Notably, this announcement comes after the recent approval of two exchanges, Quidax and Busha, which are now the first officially recognized crypto platforms in Nigeria.
Agama reiterated the SEC’s intent to regulate all entities operating in the digital space, stressing that businesses must meet the Commission’s stringent guidelines. By closely monitoring activities, the SEC aims to prevent fraud and misinformation in the digital market.
According to Agama, total transparency, anti-money laundering (AML) measures, and combating the financing of terrorism (CFT) protocols will be critical areas of focus in ensuring that crypto operations do not undermine the country’s economy.
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Stricter Measures for Market Participants
The SEC’s stance on regulation is clear: Non-compliant businesses will not be allowed to operate in the Nigerian crypto market. Dr. Agama mentioned that while numerous exchanges have submitted applications, only those meeting the Commission’s high standards will be granted licenses. This approach ensures that investors are protected while allowing innovative platforms to emerge.
In addition to crypto exchanges, the SEC has expanded its regulatory incubation programs to include four other companies testing their models under the Regulatory Incubation (RI) Program. These companies, including Trovotech Ltd and Dream City Capital, aim further to integrate digital assets into the Nigerian financial landscape. The Commission emphasized that other applications are still under review and will be assessed case-by-case.
Investor Protection as a Priority
The SEC’s focus on regulating the crypto market reflects the increasing interest of young Nigerians in digital assets. However, while fostering this interest, the Commission remains committed to ensuring that all platforms operate transparently.
To achieve this, Agama stressed the importance of education and clear regulatory frameworks. The approval of Quidax and Busha represents a significant step towards a well-regulated digital asset market, offering investors protection and ensuring that innovation is not stifled.
