Nigeria SEC Tightens Crypto Regulatory Frameworks for Exchanges

Nigeria’s SEC has planned to take legal action against crypto exchanges and investors. Those who fail to abide by their regulatory frameworks. Nairametrics, a local Nigerian media has reported that Dr. Emomotimi Agama, the SEC Director-General is emphasizing that the committee is determined to protect investors.

Similarly, in July, the Nigerian SEC mandated that virtual asset service providers (VASPs) must be incorporated and maintain an office in Nigeria. This is to qualify for the Accelerated Regulatory Incubation Programme (ARIP), which is designed to onboard VASPs in the country. This is also applied to crypto exchanges that are operating in the country outside its regulations.

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.”

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Moreover, he also emphasized that the commission is taking measures to protect citizens. From misinformation and fraudulent activities in the digital market. Also, he added that the operations of cryptocurrency exchanges must be closely regulated to avoid negative impacts on the economy.

On 29th August, Nigeria approved two crypto exchanges Quidax and Busha. The exchanges are approved under the Accelerated Regulatory Incubation Program (ARIP). Including this, the SEC also admitted four companies to test the technology under its regulatory Incubation Program.

Following this, Dr. Agama emphasized that the approval of two cryptocurrency exchanges is driven by the growing interest of young Nigerians in digital assets. He stressed the importance of establishing a clear regulatory framework to protect investors while fostering innovation.

Despite this, he also underscored the need for full disclosure, anti-money laundering (AML) measures, and combating the financing of terrorism (CFT) protocols. They are the key elements of the SEC’s regulatory approach to the crypto industry.