The Security and Exchange Commission of Nigeria (SEC) has said some crypto exchange platforms may not meet the requirements to operate in Nigeria under the new regulations governing the business. The Commission recently unveiled a new regulation which required crypto exchange platforms to obtain a valid license before operating in the market.
The new law mandates all cryptocurrency platforms and Virtual Assets Service Providers (VASPs) to obtain a license from the Nigerian Securities and Exchange Commission (SEC) prior to engaging in promotional activities on social media, television, or print media.
Additionally, cryptocurrency influencers are required to inform their audience when they receive compensation for promoting a digital asset or service, as stipulated by the new law. Non-compliance with this requirement may result in a penalty of 10 million naira and a potential imprisonment of up to three years.
In line with the new regulation, Quidax and Busha were recently granted an approval-in-principle to operate as legally recognised exchanges in Nigeria. The two companies were the first to obtain such approval after several applications had been sent by other companies.
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Speaking on the new regulation, the Director General of the SEC, Dr. Emotimi Agama, said some crypto platforms that have applied for license may not meet the requirements stipulated. Agama noted that the new regulation is targeted at creating a transparent, efficient and all inclusive crypto currency transaction in the country.
Also, Agama noted that registration is a key component of the approval process, urging applicants to comply strictly with the registration guidelines.
