The Securities and Exchange Commission (SEC) has announced plans to launch enforcement actions against individuals and business entities, including cryptocurrency exchanges, that operate outside its regulatory framework. The SEC’s Director-General, Dr. Emomotimi Agama, made this known in a statement on Sunday, reiterating the commission’s commitment to investor protection.
This move comes shortly after the SEC granted approval in principle to two cryptocurrency exchanges, Quidax and Busha. These platforms are currently the only exchanges under SEC regulation, despite the presence of several others in the country. The approval is part of the regulator’s effort to bring more structure and security to Nigeria’s burgeoning digital asset market.
Dr. Agama emphasized that the SEC would not tolerate unregulated operations in the cryptocurrency space. He stressed the importance of compliance, noting that any exchange or entity unwilling to follow the rules would face enforcement actions. “For those that do not want to play by the books, we will not allow them to operate within our space,” he warned.
The recent approval of Quidax and Busha was driven by the growing interest of young Nigerians in digital assets. Dr. Agama highlighted that creating a clear regulatory framework was essential to protect investors while also fostering innovation. The SEC is particularly focused on ensuring transparency, with anti-money laundering (AML) and counter-financing of terrorism (CFT) protocols as key pillars of its oversight.
Despite receiving numerous applications from crypto exchanges, the SEC made it clear that only those that meet its stringent regulatory standards would be approved. Dr. Agama also pointed out that the commission is working to protect citizens from fraudulent activities and misinformation in the digital market.
The SEC is balancing its commitment to investor protection with its support for innovation. The regulator aims to ensure that crypto exchanges do not negatively impact Nigeria’s economy while operating within clear guidelines. Agama reiterated that market development is a priority for the SEC, and the commission is fostering a guided regulatory framework to support innovation in the crypto space.
The SEC’s announcement follows its recent approval of the two exchanges under the Accelerated Regulatory Incubation Program (ARIP). In addition, the commission has admitted four other companies into its Regulatory Incubation (RI) Program to test their models. These firms include Trovotech Ltd, Wrapped CBDC Ltd, Dream City Capital, and HousingExchange.NG Ltd.
The SEC has assured that more companies will be granted approval as they meet its regulatory requirements, ensuring that Nigeria’s digital asset market operates within a safe and legal framework.