Nigeria’s Securities and Exchange Commission (SEC) prepares to take tough action against unregulated crypto exchanges. The Director-General warned that the Nigeria SEC will enforce actions against anyone operating in the market without adhering to regulations.
With cryptocurrency and digital assets growing in popularity, the SEC is set to shut down platforms that operate without approval.
SEC Issues Stern Warning to Unregulated Crypto Exchanges
Despite the SEC’s regulatory efforts, many cryptocurrency exchanges and platforms are likely operating in Nigeria without explicit approval. The SEC has issued warnings about engaging with these unapproved entities, highlighting the significant number of such operations in the country.
“We are certainly going to commence enforcement actions on anyone who wants to operate in this market without the intention of being regulated,” the Director-General said. “For those that do not want to play by the books, we will not allow them to operate within our space.”
Dr. Emomotimi Agama, the SEC’s Director-General, noted that the rising interest in cryptocurrencies among Nigeria’s youth is a major reason behind the recent approvals for exchanges like Quidax and Busha. These platforms now operate legally under provisional licenses, but the SEC’s stance is clear—follow the regulations or leave the market.
Agama also highlighted the need to protect investors through strong anti-money laundering (AML) measures and full transparency. With this crackdown, Nigeria’s SEC aims to keep the crypto market safe and innovative for its growing user base, ensuring that participants operate within a regulated framework.
Growing Youth Interest in Crypto Fuels SEC Approval of Two Nigerian Exchanges
As interest in digital assets continues to surge, many crypto platforms operate in Nigeria without proper approval. The SEC is clear anyone trying to bypass the rules will face strict enforcement.
Binance Under Fire: Allegations of Instability
Amid the SEC’s crackdown, Binance, the world’s largest cryptocurrency exchange, is also facing challenges. Earlier this year, Nigerian authorities detained two Binance executives as part of a broader effort against unregulated crypto platforms.
Although charges of laundering $35.4 million were dropped, Binance still faces allegations of contributing to economic instability and manipulating the naira’s value.
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