The Nigerian Securities and Exchange Commission (SEC) has pledged to crack down on fraud, money laundering, and market manipulation in the crypto sector.
The new charge was announced by the Nigerian SEC Chief Emomotimi Agama who emphasized the importance of educating investors as a key step in the fight against all the irregularities plaguing the crypto sector in the country.
The SEC chief in his remarks also promised strict enforcement against illegal crypto platforms.
Mr. Agama made his remarks at the International Organization of Securities Commissions World Investor Week where he warned Nigerians against using unlicensed crypto exchanges.
Mr. Agama in his speech emphasized the importance of educating investors to better equip them from falling victim to crypto scams.
“As financial products become more complex and technology-driven, from fintech innovations to cryptocurrency trading, it is critical and responsible for stakeholders to commit to equipping investors with the knowledge to navigate these markets confidently and responsibly,” Agama said.
It is to be recalled that the Nigerian SEC under Emomotimi Agama approved the first digital assets exchange in Nigeria with licenses going to Quidax and Busha crypto exchanges.
Another accomplishment of the Agama-led SEC with regard to the crypto industry is the setting up of a regulatory framework for crypto entities.
The SEC in June amended the rules governing Virtual Assets Service Providers (VASPS). This amendment expanded the scope of regulation and paved the way for the introduction of the Accelerated Regulatory Incubation Program (ARIP) for onboarding crypto entities.
The new charge by the SEC was backed by Lagos state governor Babajide Sanwo Olu who voiced his support for the SEC while agreeing that the crypto sector should be regulated.
While the potential of cryptocurrencies to democratize finance is significant, we must also be mindful of the risks they introduce, particularly in areas of regulation, security, and investor protection,” Sanwo-Olu said
Nigerian authority vs Crypto entities
The year 2024 has been an eventful year for the crypto sector in Nigeria as it went from crackdowns from various Nigerian entities to an olive branch of licenses dished out to some crypto exchanges.
The highlight of the tension between both parties remains the Nigeria vs Binance Ltd case which is still ongoing and led to the detention of a Binance Executive for 7 months.
The tension between both parties seems to have cooled down a bit with the introduction of licenses for Nigerian crypto exchange Busha and Quidax.