Nigeria’s Securities and Exchange Commission (SEC) is reportedly preparing to initiate enforcement measures against businesses and individuals participating in unregulated cryptocurrency transactions.
Emomotimi Agama, Director-General of the agency, announced that it would soon take action against entities offering cryptocurrency services without proper regulation, according to a report by the local media outlet, Nairametrics.
Agama highlighted that these measures are part of the SEC’s dedication to safeguarding investors, including those in the cryptocurrency sector. He stated:
“For those unwilling to follow the rules, we will not permit them to function within our jurisdiction.”
Notably, this declaration came after the securities regulator granted preliminary approval to seven crypto-focused services, including two cryptocurrency exchanges.
Agama pointed out that these approvals were motivated by the growing interest of young Nigerians in digital assets. He, however, stressed the importance of closely monitoring crypto exchanges to prevent any negative impact on the economy.
According to Agama, while promoting innovation, the SEC remains dedicated to ensuring the market operates within clear regulatory boundaries.
“We aim to achieve this without stifling innovation, as one of our core responsibilities is market development,“
He reportedly stated.
He noted that full disclosure, anti-money laundering (AML) protocols, and measures to combat the financing of terrorism (CFT) are critical components of the SEC’s oversight in the cryptocurrency sector. He also stressed the need for education and a well-structured regulatory framework to ensure that participants in the crypto space are informed and operate lawfully.
Meanwhile, the seven crypto-focused service operators granted the preliminary approvals are billed to operate under the agency’s Accelerated Regulatory Incubation Program (ARIP). In its announcement, the Nigerian SEC claimed that these approvals are steps toward full registration and are aimed at ensuring user protection and transparency.
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