The Nigerian Securities and Exchange Commission (SEC) has vowed to crack down on unlicensed cryptocurrency businesses targeting Nigerians. This comes just two weeks after approving two crypto exchanges and promising to consider similar applications. The SEC aims to protect investors without hindering innovation. To achieve this balance, Emomotimi Agama believes Nigeria needs a clear regulatory framework and education for market participants.
Nigerian Regulator Threatens Crackdown on Unlicensed Crypto Entities
This article was published more than a year ago. Some information may no longer be current.
WRITTEN BY
SHARE
Investor Protection Versus Innovation
The Nigerian Securities and Exchange Commission (SEC) has said it will commence enforcement actions against unlicensed crypto entities targeting Nigerian residents. Director General Emomotimi Agama said the regulator will take this step to protect investors.
This announcement comes less than two weeks after the SEC approved two digital asset exchanges. As noted in a Bitcoin.com News report, the SEC said it would consider similar applications from other entities that applied for licenses under its Accelerated Regulatory Incubation Program (ARIP). Nevertheless, the regulator warned residents against dealing with unlicensed entities.
In a new warning reportedly issued on September 8, Agama said the SEC would block unlicensed players from offering their products and services to Nigerian residents.
“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,” the director general warned.
Agama emphasized that while the regulator is keen on protecting investors, it wants to do this without stifling innovation. To achieve this, Agama said Nigeria needs a clear regulatory framework and education to market participants not only operate within the law but are also well informed.
Register your email here to get a weekly update on African news sent to your inbox:
What are your thoughts on this story? Share your opinion in the comments section below.
