Nigeria’s SEC Launches Crackdown on Unregulated Crypto Exchanges

NAIROBI (CoinChapter.com) — Nigeria’s Securities and Exchange Commission (SEC) has intensified its focus on unregulated cryptocurrency exchanges and platforms. The SEC’s Director-General, Emomotimi Agama, recently announced plans to enforce strict regulations, specifically targeting businesses and individuals operating without approval.

Nigeria’s SEC Targets Unregulated Crypto Platforms

Agama emphasized that entities operating in the cryptocurrency space without proper approval will face enforcement actions. He further warned that the SEC will no longer tolerate crypto businesses that disregard regulatory requirements.

“We are certainly going to commence enforcement actions on anyone who wants to operate in this market without the intention of being regulated,” he stated.

This announcement follows the Nigeria SEC’s recent decision to grant provisional operating licenses to two local digital asset exchanges, Busha Digital and Quidax Technologies. These two companies are currently the only exchanges in Nigeria operating under the SEC’s Accelerated Regulatory Incubation Programme.

Dr. Agama stated that rising interest in digital assets among young Nigerians led to the approval of two cryptocurrency exchanges. He stressed the importance of establishing a clear regulatory framework that not only protects investors but also promotes innovation.

In early 2021, the Central Bank of Nigeria (CBN) imposed a blanket ban on financial institutions servicing crypto exchanges, but in 2023, it reversed the decision. However, the new regulations introduced by the CBN seek to limit peer-to-peer transactions using the Nigerian naira.

Ongoing Scrutiny of Binance Amid Crypto Crackdown

Amid the Nigeria SEC’s crackdown, Binance, the world’s largest cryptocurrency exchange, is also facing challenges from Nigerian authorities. Nigerian authorities have detained two Binance executives, accusing them of contributing to economic instability by engaging in currency speculation. One of the executives, Tigran Gambaryan, remains in detention while awaiting the court’s decision on bail, which is expected in Oct.

Nigerian regulators previously accused Binance of illegal banking transactions, devaluing the naira, and misleading the public. Authorities dropped some charges, including tax evasion, but Binance still faces accusations of forex market manipulation.

Nigeria’s move to regulate cryptocurrency is about tightening control and protecting investors. Nigeria’s SEC is taking action against unregulated platforms and businesses that disregard regulatory framework while also moving forward with approving two exchanges to promote growth and innovation in the country.