- The growing interest of young Nigerians in digital assets was the driving force behind the recent approval of two cryptocurrency exchanges
- The SEC has received several applications for licenses from crypto exchanges
- The SEC is working to provide Nigeria's crypto and digital marketplace with clear-cut regulatory guidelines.
Nigeria’s Security and Exchange Commission (SEC) will begin a massive crackdown on cryptocurrency exchanges, individuals, and companies operating without regulations in the West African country, according to the SEC’s director general, Dr. Emomotimi Agama.
A statement released by the commission said the crackdown aims to protect investors in the country and reassure international investors that Nigeria is a safe place to invest their funds.
“We are certainly going to commence enforcement actions on anyone who wants to operate in this market without the intention of being regulated,” Agama said. “For those that do not want to play by the books, we will not allow them to operate within our space.”
Agama pointed out that the growing interest of young Nigerians in digital assets was the driving force behind the recent approval of two cryptocurrency exchanges, adding that it is critical to establish a transparent regulatory framework that safeguards investors and promotes innovation. He further explained that the SEC's supervision over the cryptocurrency industry must include full disclosure, anti-money laundering (AML) procedures, and combating the financing of terrorism (CFT) guidelines.
The SEC, according to him, has received several applications for licenses from crypto exchanges. He, however, explained that the exchanges will only receive the licenses when and if they meet the commission’s regulatory requirements. Agama added that the activities of crypto exchanges must be monitored closely and assured that the commission was working hard to protect the Nigerian public from misinformation and fraud.
“All these we seek to do without hindering innovation because part of our primary responsibility as the SEC is market development,” he stated, adding that the commission is working to provide Nigeria's crypto and digital marketplace with clear-cut regulatory guidelines.
Recall that late last month, the SEC confirmed that it had granted two indigenous crypto exchanges, Busha Digital Limited and Quidax Technologies Limited, ‘approval-in-principle’ to commence operations in the country under its Accelerated Regulatory Incubation Programme (ARIP).
How crypto scammers stole $55 million from trader via phishing
Meanwhile, TheRadar earlier reported that a crypto trader has lost $55.47 million in DAI stablecoin to fraudsters via a phishing attack. This is according to the blockchain security platform Scam Sniffer.
In a post on X, the anti-scam firm said the trader lost the asset after they misappropriatedly transferred ownership of their collateralized debt position (CDP) on DeFi Saver Proxy—a proxy contract created by the DAI stablecoin's issuer to help traders manage their collateralized debt positions (CDPs)—to a malicious wallet.
