Nigeria SEC Targets Unregulated Crypto Platforms in Upcoming Crackdown

Crypto Reporter

Shalini Nagarajan

Crypto Reporter

Shalini Nagarajan

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Shalini is a crypto reporter who provides in-depth reports on daily developments and regulatory shifts in the cryptocurrency sector.

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Last updated: 

September 8, 2024

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Nigeria’s SEC is preparing to take action against individuals and crypto exchanges that do not comply with its regulatory framework.

Local media Nairametrics reported that SEC Director-General Dr. Emomotimi Agama announced this on Sunday, while committing to protect investors.

Less than two weeks ago, the SEC granted provisional approval to two digital asset exchanges, Busha and Quidax. This provisional license allows both companies to begin operations under the Accelerated Regulatory Incubation Programme.

Nigeria SEC Issues Stern Warning to Unregulated Crypto Exchanges

Despite the SEC’s regulatory efforts, many cryptocurrency exchanges and platforms are likely operating in Nigeria without explicit approval. The SEC has issued warnings about engaging with these unapproved entities, highlighting the significant number of such operations in the country.

“We are certainly going to commence enforcement actions on anyone who wants to operate in this market without the intention of being regulated,” the Director-General said. “For those that do not want to play by the books, we will not allow them to operate within our space.”

Growing Youth Interest in Crypto Fuels SEC Approval of Two Nigerian Exchanges

Dr. Agama stated that rising interest in digital assets among young Nigerians led to the approval of two cryptocurrency exchanges. He stressed the need for a clear regulatory framework to protect investors and promote innovation.

He also highlighted the importance of full disclosure. Additionally, he emphasized the necessity of strong anti-money laundering (AML) measures as key parts of the SEC’s crypto regulatory strategy.

Binance Under Fire in Nigeria

Earlier this year, Nigerian authorities detained two Binance executives during a broader crackdown on cryptocurrency platforms, accusing them of contributing to economic instability through currency speculation and the devaluation of the naira. Initially, both executives faced charges of laundering $35.4m.

However, the tax evasion charges were later dropped, shifting the focus exclusively to Binance for these accusations. Furthermore, the government accused Binance of conducting illegal banking transactions, misleading Nigerians about the legality of these activities, and manipulating the forex market.