The Securities and Exchange Commission (SEC) has announced plans to crackdown on crypto exchanges operating outside the framework of its regulations.
The Director-General of SEC, Dr. Emomotimi Agama, stated this in a statement noting that the commission is determined to ensure a safe business environment for all investors in Nigeria.
He said the commission will begin enforcement actions against all individuals and business entities, including crypto exchanges operating in the country without any form of regulation. Also, he said the commission will safeguard citizens from misinformation and fraudulent activities in the digital market space.
This announcement comes after the capital market regulator, the SEC, granted approval to Quidax and Busha to start operating as crypto exchange platforms in the country. The two exchanges were approved under the Accelerated Regulatory Incubation Program (ARIP) program of the Commission.
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With the approval, Quidax and Busha are the first and only crypto exchange platforms in Nigeria that are currently under SEC’s regulation.
The SEC had noted that the recent approval of two cryptocurrency exchanges was spurred by the increasing interest of young Nigerians in digital and crypto assets.
The Commission further reiterated its commitment to providing a clear regulatory framework that protects investors while encouraging innovation.
It also emphasised the importance of full disclosure, anti-money laundering measures, and combating the financing of terrorism (CFT) protocols in the crypto exchange platforms.
The commission also noted that it has received quite a number of applications from other crypto exchanges that are seeking approval. However, their ability to meet the commission’s strict regulatory standards will determine their eligibility for the approval.
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It added that other applications received are being assessed and would be granted approval in principle on a case-by-case basis as they meet all its requirements.
