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Nigeria SEC to Crack Down on Unlicensed Crypto Firms

Sep 10, 2024

2 min read

Nigeria's Securities and Exchange Commission (SEC) is set to take enforcement action against unlicensed cryptocurrency firms, signaling a strict regulatory stance despite recent licensing initiatives.

Key Takeaways

  • Nigeria's SEC plans enforcement actions against unlicensed crypto firms.

  • The country has recently started issuing licenses to crypto firms.

  • The SEC aims to protect citizens while fostering market development.

Nigeria SEC's Enforcement Plans

Nigeria's SEC has announced its intention to take enforcement action against cryptocurrency firms operating without proper licenses. Emomotimi Agama, the agency's Director General, emphasized that the SEC aims to send a clear message to those not adhering to regulations. "We are certainly going to commence enforcement actions on anyone who wants to operate in this market and does not have the intention of being regulated," Agama stated.

Recent Licensing Initiatives

Despite its strict approach, Nigeria has recently begun issuing licenses to cryptocurrency firms. Last month, the country awarded licenses to cryptocurrency exchanges Quidax and Busha. This move is part of a broader effort to regulate the burgeoning crypto market while ensuring that only compliant firms operate within the country.

Past Regulatory Actions

In the past, Nigeria has blocked certain cryptocurrency exchanges, although Coinbase has refuted claims of being inaccessible in the country. Additionally, in March, the SEC released guidelines aimed at preventing criminals from registering as operators.

Ongoing Legal Battles

Nigeria is currently involved in a legal battle against the Binance exchange and two of its executives. One of the executives, who has been detained for over six months, is reportedly seeking bail due to severe illness.

Balancing Regulation and Innovation

Agama noted that the SEC's enforcement actions are designed to protect citizens without stifling innovation. "All this we seek to do without hindering innovation because part of our primary responsibility as the SEC is market development," he added.

Conclusion

The Nigeria SEC's upcoming enforcement actions against unlicensed crypto firms highlight the country's commitment to regulating the crypto market. While the SEC aims to protect citizens, it also seeks to foster innovation and market development.

Sources

  • Nigeria SEC to Commence Enforcement Action on Unlicensed Crypto Firms, CoinDesk.

  • La SEC de Nigeria emprenderá acciones legales contra las criptomonedas sin licencia, CoinDesk.

  • SEC da Nigéria iniciará ação de execução contra empresas de Cripto não licenciadas, CoinDesk.

  • Комиссия по ценным бумагам и биржам Нигерии начнет принимать меры в отношении нелицензированных Криптo, CoinDesk.

  • Nigeria SEC na Magsisimula ng Pagkilos sa Pagpapatupad sa Mga Hindi Lisensyadong Crypto Firm, CoinDesk.

Sep 10, 2024

2 min read

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