-Nigeria’s SEC To Start A Crackdown On Illegal Crypto Services-
Nigeria's Securities Exchange Commission (SEC) is beginning a crackdown on individuals and firms, including crypto exchanges, that operate without regulatory approval. This move follows the recent licensing of Quidax and Busha as the first officially regulated crypto exchanges in the country. The SEC's Director General, Emomotini Agama, announced that enforcement actions will be taken against unlicensed operators, with penalties starting from 5 million Naira and daily fines for ongoing violations.
The SEC aims to foster youth involvement in the crypto industry within a regulated environment, ensuring investor protection while encouraging innovation. Licensed exchanges must comply with anti-money laundering (AML) and combating the finance of terrorism (CFT) laws, implement customer verification, report suspicious activities, maintain a minimum paid-up capital of 500 million Naira, and secure a fidelity insurance bond.
Agama emphasized that while the SEC is committed to market development and innovation, it will enforce strict regulations to prevent misinformation and fraud. Quidax and Busha's licensing under the SEC's Accelerated Regulatory Incubation Program (ARIP) is part of a broader effort to regulate and support digital asset ventures, with more firms' applications under review.