• The Nigerian SEC is targeted on defending traders taking part within the cryptocurrency sector.
• The SEC not too long ago granted in-principle approval to 2 cryptocurrency exchanges.
• The company will give attention to educating traders about cryptocurrencies.

In line with native media reviews, digital asset buying and selling platforms and people in Nigeria that fail to adjust to native legal guidelines will face motion from the nation’s securities regulator, the Securities and Trade Fee (SEC).

In an announcement on Sunday, SEC Commissioner Emomotimi Agama confirmed that the bureau is dedicated to defending Nigerian traders from any hurt brought on by people and entities providing companies to traders within the West African nation. Agama added:

“We will definitely launch enforcement motion in opposition to those that need to function on this market with out aspiring to be regulated. Those that don’t play by the foundations is not going to be allowed to function in our territory.”

Additionally learn: Nigeria Crypto Tax: New Rules to Come into Impact in 2024

Two Platforms Authorised, Extra Scrutiny Continues

It needs to be famous that this assertion by the SEC DG comes shortly after the company granted in-principle approval to 2 native digital asset buying and selling platforms, Quidax and Busha. Whereas there are quite a few corporations providing cryptocurrency buying and selling companies in Nigeria, these are the one two platforms that the company has licensed.

Agama mentioned Kidax and Busha acquired in-principle approval following a surge in younger Nigerians taking an curiosity within the cryptocurrency business. The SEC DG believes it’s important to manage the rising cryptocurrency business whereas on the similar time encouraging innovation.

Additionally see: Nigerian Crypto Information: SEC Grants License to Trade

The report additionally acknowledged that the SEC will consider exchanges based mostly on their insurance policies on transparency, anti-money laundering (AML) measures, and combating the financing of terrorism (CFT) protocols. Agama confirmed that the SEC has acquired a number of functions from numerous exchanges, however solely those who meet its strict pointers shall be permitted.

SEC takes aggressive stance on investor safety

The Nigerian SEC is actively growing measures to forestall fraudulent actions within the digital asset sector and shield traders from fraud and Ponzi schemes. Moreover, the company will “intently monitor” developments within the cryptocurrency sector to keep away from disrupting the economic system.

Agama additional careworn the necessity to educate traders on cryptocurrencies whereas making certain that corporations and people working within the crypto area keep inside the purview of native legal guidelines.