The Nigeria Securities and Exchange Commission (SEC) has announced its move to enforce crackdown actions against any crypto platforms operating in the country without adherence to regulations.
Nigeria SEC To Begin Crackdown On Unregulated Crypto Platforms In The Country
According to local media, Dr. Emomotimi Agama, the DG of the Nigeria Securities and Exchange Commission (SEC), released a statement on Sunday, September 8, 2024, that indicated that the commission is planning to launch a crackdown on any financial platforms or individuals that do not adhere to its regulatory framework.
Agama added that
This also applies to those operating in the crypto industry.
That means the SEC will soon begin to target and enforce necessary actions against anybody or businesses, including crypto platforms, operating outside its regulations in the country.
In his statement, Agama explained that the commission’s move is crucial to protect all investors.
This announcement is coming barely three weeks after the commission granted a provisional operating license to two digital asset exchanges – Busha and Quidax – in the country, as reported by BTCRepublic.
BTCRepublic added that the license made Quidax the first crypto exchange in Nigeria to obtain such a license from the Nigeria SEC and will enable the company to operate under the Accelerated Regulatory Incubation Programme (ARIP).
Stricter Moves Against Unregulated Crypto Exchanges
This is not the first time that the Nigeria SEC has taken regulatory actions against crypto and financial platforms in the country.
Some time ago, the SEC issued warnings to citizens to desist from conducting business with these unregulated entities.
However, despite all the efforts by the SEC, many of these platforms are still carrying out their operations in the country without explicit approval.
Hence, the recent stricter move by the SEC’s Director General was to crack down on anybody or businesses.
Who want to operate in the market without having the intention of being regulated.
Agama warned that,
For those that do not want to play by the books, we will not allow them to operate within our space.
He also highlighted that the regulatory framework requires full disclosure and implementation of strong anti-money laundering (AML) measures.
Nigerian Youths Are Developing Growing Interest In Cryptocurrency
In his statement, Agama also acknowledged the growing interest in cryptocurrency among Nigerians, especially the youths.
He mentioned that this interest in cryptocurrency fuelled the SEC’s approval of the two crypto exchanges in August.
Nevertheless, Agama emphasized that a stringent regulatory framework must be in place to “protect investors” and promote innovation. He added that it is the main responsibility of the SEC to provide clarity and regulations, as well as protect investors.
Earlier this year, the SEC charged Binance crypto exchange for naira devaluation, tax evasion, and currency speculation, which contributed to economic instability in the country in its move to crackdown on crypto exchanges.
This led to the detention of two Binance execs, who both faced $35.4M laundering charges.
