The Securities and Exchange Commission (SEC) of Nigeria has announced that it will soon begin enforcement actions against unregulated individuals and businesses, including cryptocurrency exchanges, operating outside of its guidelines.
This move follows the recent approval of two crypto exchanges, Quidax and Busha, which are the first to be officially regulated by the SEC.
SEC Director-General Dr. Emomotimi Agama emphasized the Commission’s commitment to protecting investors and ensuring that all entities in the crypto space comply with regulatory standards.
He warned that any entity operating without the intention of adhering to SEC regulations would face enforcement actions. The approval of the two exchanges is part of SEC’s effort to respond to the growing interest in digital assets among young Nigerians.
Agama highlighted that while innovation in the crypto space is encouraged, the SEC will impose strict oversight, including full disclosure, anti-money laundering (AML) protocols, and measures to combat the financing of terrorism (CFT).
He also noted that the SEC has received numerous applications from other crypto exchanges and will evaluate each based on their ability to meet stringent regulatory criteria.
In addition to the two approved exchanges, four companies were admitted to test their models under SEC’s Regulatory Incubation Program, which aims to foster market development while ensuring compliance with clear guidelines.
This move signals Nigeria’s increasing focus on regulating the rapidly growing digital asset market while safeguarding investors and promoting innovation.