The Securities and Exchange Commission has announced that it will soon initiate enforcement actions against individuals and business entities, including cryptocurrency exchanges, operating outside its regulatory framework.
In a statement released on Sunday, SEC Director-General Dr. Emomotimi Agama emphasized the commission’s commitment to safeguarding investors, according to Nairametrics.
This follows the SEC’s recent approval in principle for two cryptocurrency exchanges, Quidax and Busha, marking them as the first and only exchanges currently regulated by the commission.
Despite the presence of several exchanges in the country, these two are the only ones officially recognized by the SEC to date.
The SEC DG said
“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.”
Agama noted that the recent approval of two cryptocurrency exchanges, Quidax and Busha, was driven by the growing interest of young Nigerians in digital assets.
He emphasized the need for a clear regulatory framework that both protects investors and fosters innovation.
He highlighted the importance of full disclosure, anti-money laundering (AML) measures, and combating the financing of terrorism (CFT) protocols as crucial components of the SEC’s regulatory approach.
The SEC DG revealed that the SEC has received numerous applications from cryptocurrency exchanges.
However, he clarified that only those meeting the commission’s stringent regulatory standards will be registered.
He added that the SEC is also working to protect citizens from misinformation and fraudulent activities in the digital market.
Dr. Agama emphasized the need for close monitoring of crypto exchanges to prevent any adverse effects on the economy.
While the SEC is committed to fostering innovation, it remains dedicated to ensuring that the market operates within established regulatory guidelines.
“All these we seek to do without hindering innovation because part of our primary responsibility as the SEC is market development,” Agama stated.
On August 29, the SEC granted Approval-in-Principle to Quidax and Busha, recognizing them as legally operating crypto trading platforms under the Accelerated Regulatory Incubation Program (ARIP).
Additionally, four other companies have been admitted to test their models and technology under the SEC’s Regulatory Incubation (RI) Program.
