Nigeria’s SEC Plans Increased Oversight for Crypto Exchanges
The Securities and Exchange Commission (SEC) in Nigeria is preparing to bolster efforts to regulate cryptocurrency exchanges and entities operating without proper registration. This action, reported by local media, is part of a broader strategy to protect investors and maintain market stability amidst the growing digital asset industry, projected to reach $52.5 million by 2028.
Director-General Emomotimi Agama reaffirmed the SEC’s strong commitment to ensuring compliance with existing regulations by all market participants. In a statement released on Sept. 8, Agama stressed that enforcement actions will be taken against unlawfully operating entities, highlighting the importance of regulatory adherence. Emphasizing transparency, anti-money laundering measures, and protocols against terrorism financing in the digital asset sector, Agama reassured stakeholders of the SEC’s intention to cultivate an environment that encourages innovation while protecting investors.
The recent approval of Nigerian crypto exchanges like Quidax and Busha is a significant milestone, with Agama revealing ongoing reviews of other applications. However, meeting strict criteria is crucial for approval. Additionally, the SEC has admitted four companies into its Regulatory Incubation (RI) Program, allowing them to enhance their platforms under regulatory scrutiny.
These regulatory advancements come in the wake of legal actions taken against foreign exchanges Binance and OKX, which exited the Nigerian market due to non-compliance with local regulations. This proactive regulatory stance demonstrates Nigeria’s dedication to creating a secure environment for innovation in the digital asset sector.
As Nigeria’s digital asset industry evolves, adhering to regulatory standards will be essential for maintaining investor trust and encouraging responsible development. The SEC’s proactive enforcement of compliance not only reflects its commitment to protecting investors but also signals its endorsement of a thriving and regulated digital asset ecosystem.
