The Securities and Exchange Commission (SEC) has said it would soon commence enforcement actions against all individuals and business entities, including crypto exchanges operating in the country outside its regulations.
The Director-General of SEC, Dr. Emomotimi Agama, stated this in a statement released on Sunday, emphasizing that the commission is determined to protect all investors.
This is coming barely two weeks after the capital market regulator granted approval in principle to two crypto exchanges in the country, Quidax and Busha. While there a number of exchanges operating in the country, these two exchanges are the first and only ones currently under SEC’s regulation.
While stressing the Commission’s commitment to protecting investors, including those involved in the cryptocurrency space, 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 disclosed that the SEC had received numerous applications for crypto exchanges but clarified that the number of registered exchanges would be determined by their ability to meet the commission’s strict regulatory standards.
“All these we seek to do without hindering innovation because part of our primary responsibility as the SEC is market development,” Agama stated.
He emphasized the need for education and a guided regulatory framework to ensure that participants in the crypto space are well-informed and operate within the law.
Nigeria’s SEC on August 29 announced that it had granted an Approval-in-Principle to two crypto exchanges Quidax and Busha, giving them the status of legally recognised crypto trading platforms in the country.