Nigeria’s Securities and Exchange Commission (SEC) is gearing up to crack down on individuals and cryptocurrency exchanges that fail to adhere to its regulatory guidelines. According to a report by local media outlet Nairametrics, SEC Director-General Dr. Emomotimi Agama made this announcement recently, emphasizing the importance of protecting investors in the cryptocurrency market.
In a recent development, SEC granted provisional approval to two digital asset exchanges in Nigeria, Busha and Quidax, under its Accelerated Regulatory Incubation Programme. This move signifies the regulator’s willingness to embrace innovative crypto exchanges while ensuring compliance with regulatory standards.
Nigeria SEC Issues Stern Warning to Unregulated crypto Exchanges
Despite the SEC's proactive regulatory measures, several cryptocurrency exchanges and platforms are suspected to be operating in Nigeria without the necessary approvals. The SEC has issued a stern warning against engaging with these unauthorized entities, citing a significant number of unregulated operations in the country.
Dr. Agama, the Director-General of SEC, emphasized the upcoming enforcement actions on entities operating in the cryptocurrency market without regulatory authorization. The SEC is committed to enforcing compliance and will not tolerate any non-compliance within the industry.
Growing Youth Interest in crypto Fuels SEC Approval of Two Nigerian Exchanges
The increasing interest in digital assets among young Nigerians played a pivotal role in the SEC's decision to approve Busha and Quidax. Dr. Agama highlighted the importance of establishing a robust regulatory framework to safeguard investors and foster innovation within the cryptocurrency industry.
Transparency and stringent anti-money laundering measures are essential components of the SEC's regulatory approach towards cryptocurrencies. Dr. Agama reiterated the significance of these measures in ensuring a secure and compliant cryptocurrency landscape in Nigeria.
binance Under Fire in Nigeria
Earlier this year, Nigerian authorities detained two executives from binance as part of a broader crackdown on cryptocurrency platforms. The authorities accused binance of contributing to economic instability through currency speculation and naira devaluation, leading to charges of money laundering initially.
Despite the initial allegations, the tax evasion charges against the executives were dropped, shifting the focus solely on binance. The Nigerian government accused the cryptocurrency exchange of engaging in illicit banking transactions, misleading the public about the legality of its operations, and manipulating the forex market.
