Nigeria: SEC tightens noose on unlicensed crypto exchanges, insists on rules

Unlicenced crypo exchanges are facing hard times as Nigerian authorities are tightening grip on the burgeoning digital asset market.

The Securities and Exchanges is enforcing its rules against unregistered crypto exchanges, and moving to protect investors and ensure transparency as digital assets gain popularity.

The SEC’s Director-General, Emomotimi Agama, said there is the need for all crypto operators to comply with the rules.

He said those operating without proper authorization will soon face enforcement actions.

According to him, “We are focused on promoting transparency, anti-money laundering measures, and anti-terrorism financing protocols within the digital asset space.”

Agama said SEC’s aim is not to hinder innovation but to foster a secure environment where technology can thrive responsibly.

Nigeria’s digital asset market is one of the fastest-growing in Africa, with projections set at $52.5 million by 2028.

The SEC’s recent regulatory actions are part of a broader strategy to maintain stability in this rapidly expanding sector.

Earlier, the SEC had granted provisional approval to two local exchanges, Quidax and Busha, marking them as the only platforms currently operating under its regulations.

Several more exchanges have applied for licenses, but they must meet rigorous standards to gain approval. The SEC has also launched a Regulatory Incubation (RI) Program, which allows selected firms to develop their platforms under strict regulatory oversight.

The SEC’s actions followed a series of crackdowns on foreign exchanges such as Binance and OKX, which were operating without adhering to Nigerian laws.

Both exchanges have since exited the Nigerian market. The regulatory body is keen on ensuring that all players, both local and international, adhere strictly to its guidelines.