- Nigeria SEC is focused on protecting investors participating in the crypto sector.
- The SEC recently gave in-principle approvals to two crypto exchanges.
- The agency will focus on educating investors regarding crypto.
The digital asset trading platforms and individuals in Nigeria that are not complying with local laws will face action from the country’s securities regulator, the Securities and Exchange Commission (SEC), according to local media reports.
In a statement on Sunday, Director-General of SEC, Dr. Emomotimi Agama, confirmed that his agency is focused on protecting Nigerian investors against any kind of damage from individuals or entities catering services to the investors in the West African country. Agama added:
“We are certainly going to commence enforcement actions on anyone who wants to operate in this market without the intention of being regulated. For those that do not want to play by the books, we will not allow them to operate within our space.”
Read also: Nigeria Crypto Tax: New Regulations Coming in 2024
Approval for Two Platforms, More Scrutiny to Come
It is important to note that such a statement from the SEC’s DG comes not long after the agency gave in-principle approval to two digital asset trading platforms in the country, Quidax and Busha. There are numerous companies providing crypto trading services in Nigeria but these two platforms are the only ones authorized by the agency.
According to Agama, Quidax and Busha were given the in-principle approval following the surge in young Nigerians interested in the crypto space. The SEC DG believes that it is imperative to regulate the growing crypto space while also promoting innovation simultaneously.
Read also: Nigeria Crypto News: SEC to License Exchanges
The report also indicated that the SEC will assess exchanges based on their policies related to transparency, anti-money laundering (AML) measures, and counter-terrorism financing (CFT) protocols. Agama confirmed that while the SEC has received multiple applications from various exchanges, only those meeting the strict guidelines will be approved.
SEC’s Proactive Stance on Investor Protection
The Nigerian SEC is actively developing measures to prevent fraud in the digital asset space and protect investors from scams and Ponzi schemes. Moreover, the agency will “closely monitor” the developments of the crypto sector so that it does not cause disruption of the economy.
Agama further highlighted the need to educate investors regarding cryptocurrencies while ensuring that the firms and individuals active in the crypto space remain within the boundaries of the regional laws.
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