In recent developments, the Nigerian Securities and Exchange Commission (SEC) is set to stipulate new penalties for crypto and other digital asset-related fraud.

According to a report from Binance Square, the Nigerian regulator will amend the Investment and Securities Act to include these tougher penalties. Per the report, offenders convicted of these crimes would either be imposed with a fine of up to 20 million Naira (about $12,000) or face a jail term of 10 years.

Notably, some speculate that the SEC’s new penalties will reduce criminal activity in the Nigerian crypto space. “Some members of the cryptocurrency community believe this measure will significantly deter criminals who exploit the term ‘cryptocurrency’ to deceive unsuspecting investors,” said Binance.

SEC Penalty Amendment: Implications

For a country that leads crypto adoption in Africa and is fast becoming a major player in the global crypto space, Nigeria has its fair share of crypto scammers and fraudsters.

For context, these miscreants are the bane of this blossoming part of the Nigerian economy, and “exploit the term ‘cryptocurrency’ to deceive unsuspecting investors,” according to Binance.

By amending the Investment and Securities Act with these new penalties, the SEC is creating the legal instrument against the majority of the cybercrimes perpetrated in the country.

Accordingly, the new penalties discourage more elaborate fraudulent activities like Ponzi schemes and celebrity-driven pump-and-dump schemes.

With the Nigerian crypto space rid of all these fraudsters and scammers, the crypto industry will attract more local investors and boost the nation’s digital economy.

The SEC Pledges to Fight Crypto Fraud

In our previous article, the SEC, led by Emomotimi Agama, pledged to combat fraud, money laundering, and market manipulation in the crypto sector, emphasizing investor education as a key strategy. Notably, the Lagos State Governor Babajide Sanwo-Olu also supported SEC’s efforts to regulate the sector responsibly.