Nigerian SEC Cracks Down on Unsanctioned Crypto Exchanges!

Key Points:

• Nigerian SEC will crack down on crypto exchanges that are not under its supervision, aiming for stricter compliance and investor protection.
• Quidax and Busha receive Nigeria’s first “in-principle approval” from the SEC, marking a milestone in crypto regulation.
• Nigeria’s crypto market is projected to reach USD 52.5 million by 2028, with new regulations strengthening AML and CFT measures.

The Nigerian SEC announced plans to start enforcement procedures against digital asset exchanges and any other related entities for failing to operate under their supervision.

Nigerian SEC to Intensify Crypto Regulation

The SEC’s Chief Executive Officer, Emomotimi Agama, said the commission would do everything within its powers to protect investors by ensuring “adequate” compliance with set rules by market operators. According to Nairametrics, as much as the SEC appreciates technology, innovation, and the emergence and growth of the crypto market, it is equally committed to ensuring that the regulations are sound enough to ward off all forms of non-compliance.

Read more: Nigerian Crypto Transactions Get a Big Boost With Government Backing

Quidax and Busha Get SEC Approval

In perhaps the biggest step toward regulating the crypto space in Nigeria, the country’s SEC granted “in-principle approval” for two cryptocurrency exchanges, Quidax and Busha, sometime this year. That would make the respective platforms the first in the country to get such formal recognition from the SEC, hence a landmark for the country’s approach toward regulating digital currencies.

Agama further explained that the Nigerian SEC’s regulatory regime will contain strong provisions, like anti-money laundering and combating the financing of terrorism, to deal with any looming risk in crypto transactions. A more regulatory approach is thus intended toward market integrity and investor protection, considering that Nigeria’s cryptocurrency market is likely to be valued at USD 52.5 million by 2028.