According to local media reports, Nigeria’s Securities and Exchange Commission (SEC) is preparing to step up enforcement actions against crypto exchanges and other companies operating outside the purview of regulators.
The crackdown is part of the watchdog’s broader strategy to protect investors and maintain market stability in the country’s fast-growing digital asset sector, which is expected to reach $52.5 million by 2028.
Compliance with rules
In a statement on September 8, SEC Director General Emomotimi Agama reiterated the regulator’s commitment to ensure that all market participants comply with established rules.
Agama stated:
“We will soon take enforcement action against those operating in this market without adhering to regulatory guidelines. Anyone who is not willing to follow the proper channels will not be allowed to continue their activities.”
Agama emphasized that the commission is focused on promoting full transparency, anti-money laundering (AML) protocols and counter-terrorist financing (CFT) measures within the digital asset space.
He further assured stakeholders that the role of the SEC is not to stifle innovation, but to create a structured environment for new technologies to flourish responsibly. He added that the regulatory push is aimed at striking a balance between promoting innovation and ensuring investor safety.
Regulatory actions
The SEC’s actions come just weeks after it granted its first in-principle approval to two local crypto exchanges, Quidax and Busha.
These exchanges are the only ones currently operating legally under the commission’s regulations. However, Agama told local media that several other applications are being assessed but exchanges must meet strict standards to gain approval.
In addition to approving Quidax and Busha, the SEC has admitted four companies to its Regulatory Incubation (RI) Program, where they can develop and test their platforms under regulatory supervision.
The regulatory developments come after the country took legal action against foreign exchanges such as Binance and OKX, both of which have left the country. Nigerian authorities said the stock exchanges were operating in the country without adhering to local regulations.
