Nigeria To Begin Cracking Down On Unregulated Crypto Activity

Nigeria Crypto: Nigeria’s SEC will encourage innovation in the growing digital asset space but will prioritize the protection of investors.

The Securities and Exchange Commission in Nigeria has announced its plans to begin enforcement actions against businesses and individuals involved in unregulated cryptocurrency transactions.

#Nigeria ’s SEC is set to take action against unregulated crypto businesses, aiming to protect investors while supporting innovation.

Will stricter regulations help or hinder #Nigeria 's growing crypto space?
Let’s discuss!

— Dr. Crypto (@Dr_Crypto1) September 9, 2024

Nigerian SEC Speaks On Its Plans To Regulate The Crypto Industry

The Director-General of the SEC, Dr. Emomotimi Agama, announced that Nigeria will take action against firms attempting to offer cryptocurrency services without proper regulation. This is according to a report today (September 9) by Nairametrics, a local news agency in Nigeria.

Agama stressed in a statement released on September 8, that the measures align with the SEC’s commitment to protect investors.

The statement read, “We are certainly going to commence enforcement actions on anyone who wants to operate in this market without intending to be 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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Nigeria Only Has Two Digital Asset Exchanges Currently Regulated By The SEC

(SEC.GOV.NG)

The SEC’s latest statement comes roughly two weeks after the Nigerian SEC issued the first provisional operating licenses to two local crypto exchanges, Quidax Technologies & Busha Digital.

Other SEC-approved businesses related to digital assets exist in Nigeria. However, Busha and Quidax are the only two exchanges officially regulated by the authority.

According to Agama, Busha, and Quidax, recent approvals in Nigeria were driven by young Nigerians’ growing interest in digital assets. The official stressed the need to provide a clear regulatory framework protecting investors while encouraging innovation.

Nigeria Has Struggled With Crypto Regulation Until Now Due To Inconsistency And Lack Of Clarity

At the beginning of 2021, the Central Bank of Nigeria (CBN) outlawed all financial institutions from supporting cryptocurrency exchanges in the nation, imposing a complete ban on cryptocurrencies.

The CBN formally abolished the prohibition on cryptocurrency transactions in late 2023. It then pushed new rules limiting peer-2-peer cryptocurrency trade using the Nigerian Naira in May 2024.

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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.