The Securities and Exchange Commission (SEC) has announced that it will take enforcement action against all individuals and companies (including cryptocurrency exchanges) operating in the country and not following regulations.
The Director-General of SEC, Dr. Emomotimi Agama, said this in a statement on Sunday, stressing that the commission is committed to protecting all investors.
This comes almost two weeks after the capital markets regulator gave in-principle approval to two cryptocurrency exchanges in the country, Quidax and Busha.
There are several exchanges operating in the country, but these two are the first and only ones currently under SEC regulation.
The SEC DG stressed the commission’s commitment to protect investors, including those operating in the cryptocurrency sector, saying, “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.”
He noted that the recent approval of two cryptocurrency exchanges comes as a result of growing interest in digital assets among young Nigerians.
According to Agama, it is important to provide a clear regulatory framework that protects investors while promoting innovation.
He stressed the importance of full disclosure, anti-money laundering (AML) measures, and counter-terrorist financing (CFT) protocols as essential elements of the SEC’s oversight of the cryptocurrency sector.
Agama revealed that the SEC has received a large number of applications for cryptocurrency exchanges, but clarified that the number of registered exchanges will depend on their ability to meet the Commission’s strict regulatory standards.
He said the Commission is taking measures to protect the public from misinformation and fraudulent activities in the digital market sector, and stressed that cryptocurrency exchanges’ activities need to be closely monitored to ensure they do not hinder the economy. Agama reiterated that while encouraging innovation, the SEC will continue to insist that the market operates within clear regulatory guidelines.
“All these we seek to do without hindering innovation because part of our primary responsibility as the SEC is market development,” Agama explained.
He emphasized the need for education and a guiding regulatory framework to ensure participants in the cryptocurrency space are well-informed and operate within the bounds of the law.
