The Securities and Exchange Commission has pledged to tackle fraud, money laundering, and market manipulation within Nigeria’s rapidly evolving cryptocurrency sector.
This commitment was made by SEC Director General, Emomotimi Agama during the opening of the International Organisation of Securities Commissions World Investor Week in Lagos on Monday, according to The Punch.
Agama emphasized the importance of regulatory measures to ensure the integrity of the market and protect investors as the cryptocurrency landscape continues to grow.
He noted, “As the aforementioned framework continues to evolve, enforcement action against illegal crypto platforms will significantly increase in severity.
“As financial products become more complex and technology-driven, from fintech innovations to cryptocurrency trading, it is critical and responsible for stakeholders to commit to equipping investors with the knowledge to navigate these markets confidently and responsibly.”
To tackle the unique challenges presented by the cryptocurrency landscape, Agama revealed that the SEC has developed and released comprehensive frameworks to regulate Virtual Asset Service Providers.
He noted that these frameworks aim to uphold market integrity while fostering innovation in the sector.
He said, “Through this approach, we have created a Regulatory Incubation Programme within which new technologies and digital assets can be tested and approved for public use.”
The Governor of Lagos State, Babajide Sanwo-Olu, backed the SEC’s efforts, emphasising that Lagos stood at the intersection of innovation, technology, and finance.
“The emergence of digital assets and the increasing role of technology in finance present both unprecedented opportunities and challenges. We must engage thoughtfully and strategically with these developments,” he stated.
He underscored the need for comprehensive regulation, stating, “While the potential of cryptocurrencies to democratise finance is significant, we must also be mindful of the risks they introduce, particularly in areas of regulation, security, and investor protection.”
