The Nigerian Securities and Exchange Commission (SEC) plans to take enforcement action against businesses and individuals involved in unregulated cryptocurrency trading. Commissioner Emomodimi Agama said any entity operating in the market without being regulated will face action, emphasizing that the SEC is committed to protecting investors.
Currently, only two cryptocurrency exchanges in Nigeria (Busha Digital and Quidax Technologies) have obtained regulatory licenses. Agama pointed out that as young people's interest in digital assets grows, a clear regulatory framework needs to be established to protect investors and promote innovation. In addition, the SEC's supervision will include inspections related to anti-money laundering and combating terrorist financing.
Although Nigeria has become one of the world's major cryptocurrency markets, its regulatory policies are inconsistent. In 2021, the Central Bank of Nigeria completely banned cryptocurrency trading, but issued a regulatory framework in 2022. At the end of 2023, the central bank lifted the ban, but introduced new regulations in 2024 to restrict peer-to-peer cryptocurrency exchanges in naira. At the same time, global exchanges such as Binance also face regulatory challenges. Binance announced its withdrawal from Nigeria in March 2024, but its executives were still detained by local law enforcement agencies.