Nigeria’s Securities and Exchange Commission is sending a clear message: unregulated cryptocurrency activities will not be tolerated.
Here’s the latest news in cryptocurrency: Nigeria’s Securities and Exchange Commission (SEC) is preparing to take enforcement actions against businesses and individuals involved in unregulated cryptocurrency transactions.
On September 9, local news outlet Nairametrics reported that SEC Director-General Emomotimi Agama announced the regulator’s intent to crack down on entities offering cryptocurrency services without proper oversight.
Agama highlighted that these measures are part of the SEC’s broader commitment to safeguard investors, including those active in the cryptocurrency space.
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.”
Currently, only two crypto exchanges—Busha Digital and Quidax Technologies—are regulated in Nigeria. These exchanges received provisional operating licenses on August 29, two weeks before Agama’s announcement.
According to the SEC’s website, while several other SEC-approved businesses exist in the digital asset sector, Busha and Quidax are the only exchanges officially under its supervision.
Agama explained that the increasing interest of young Nigerians in digital assets drove the recent regulatory approvals for these exchanges. He emphasized the need for a clear regulatory framework that protects investors while fostering innovation. The SEC’s oversight will also focus on enforcing Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) protocols.
Despite Nigeria’s rise as a key global player in the cryptocurrency market, the country’s regulatory approach has been criticized for its lack of clarity. In 2021, the Central Bank of Nigeria (CBN) imposed a ban on financial institutions servicing crypto exchanges.
According to the latest crypto news, the CBN eventually lifted the ban in late 2023, but new rules set to take effect in May 2024 aim to restrict peer-to-peer crypto exchanges using the national currency, the naira.Additionally, global exchanges have also faced strict treatment from Nigerian regulators. For example, Binance, which announced its exit from Nigeria in March 2024, is still grappling with enforcement actions.
