The Nigeria SEC will take action against individuals who operate in the market without complying with regulations, as the Director-General cautioned.
Nigeria’s Securities and Exchange Commission (SEC) is preparing to prosecute crypto exchanges and individuals who fail to adhere to its regulatory framework.
On Sunday, Dr. Emomotimi Agama, the Director-General of the Securities and Exchange Commission (SEC), disclosed this information to Nairametrics, a local media outlet. He also pledged to safeguard investors.
The SEC granted provisional approval to two digital asset exchanges, Busha and Quidax, less than two weeks ago. This provisional license enables both enterprises to commence operations under the Accelerated Regulatory Incubation Programme.
Many cryptocurrency exchanges and platforms are likely operating in Nigeria without explicit sanction, despite the SEC’s regulatory efforts. The SEC has issued warnings regarding the engagement with these unapproved entities, emphasizing the substantial number of such operations in the country.
The Director-General stated, “We will undoubtedly initiate enforcement actions against any individual who wishes to engage in this market without the intention of being regulated.” “We will not permit those who refuse to adhere to the rules to conduct business within our premises.”
“The sanction of two cryptocurrency exchanges was a result of the increasing interest in digital assets among young Nigerians,” Dr. Agama stated. His emphasis was on the necessity of a transparent regulatory framework to safeguard investors and foster innovation.
Additionally, he underscored the significance of complete disclosure. Furthermore, he underscored the importance of robust anti-money laundering (AML) measures as critical components of the SEC’s crypto regulatory strategy.
During a broader assault on cryptocurrency platforms earlier this year, Nigerian authorities detained two Binance executives, alleging them of contributing to economic instability through currency speculation and the devaluation of the naira. At the outset, both executives were accused of laundering $35.4 million.
Nevertheless, the tax evasion charges were subsequently dismissed, which shifted the focus solely to Binance in relation to these allegations. In addition, the government accused Binance of manipulating the forex market, misrepresenting Nigerians about the legality of these activities, and conducting unlawful banking transactions.
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