SEC Intensifies Action Against Unauthorized Cryptocurrency Operators

In a virtual meeting with the Blockchain Industry Coordinating Committee of Nigeria (BICCoN), Dr. Emomotimi Agama, Acting Director General of the SEC, emphasized the necessity for firm decisions to stabilize the economy.

The Securities and Exchange Commission (SEC) declared on Monday its commitment to decisively maintain the integrity of the capital market and safeguard investor interests.

This move is targeted at eliminating unlawful trading activities within the realm of virtual assets.

According to Daily Trust, speculative actions in the digital marketing sector recently placed significant strain on the naira. This occurred while the federal government and the Central Bank of Nigeria (CBN) were addressing the currency's devaluation due to inflation impacting the cost of goods and services nationwide.

In a virtual meeting with the Blockchain Industry Coordinating Committee of Nigeria (BICCoN), Dr. Emomotimi Agama, Acting Director General of the SEC, emphasized the necessity for firm decisions to stabilize the economy.

This meeting took place against the backdrop of increasing regulatory scrutiny over cryptocurrency exchanges in the nation.

It has been reported that the federal government, earlier in January, restricted Nigerian crypto users' access to major platforms such as Binance and OctaFX. This was concurrent with the SEC's proposal to raise registration fees from N30m to N150m.

With the Nigerian crypto market valued at over $57bn, the CBN's recent crackdown is attributed to its adverse effects on the foreign exchange market. This led Binance to cease its operations in Nigeria.

Additionally, the CBN cautioned fintech firms in Nigeria against adding new clients, aiming to curb any illicit trading activities on their platforms.

SEC to Exercise Full Authority

Following the ongoing regulatory tightening, SEC Nigeria reaffirmed yesterday its readiness to employ its full authority to address detrimental issues threatening national interests.

Agama conveyed that the Commission seeks to collaborate in ensuring the capital market community is globally recognized for its integrity and fairness.

He highlighted the recent concerns about crypto P2P traders and their potential influence on the naira's exchange rate, calling for united efforts and dialogue within the financial market community.

Removing Naira from P2P Trading Considered Optimal

Agama suggested that removing the naira from Peer-to-Peer (P2P) trading is essential to prevent current manipulative practices. He urged crypto space participants to patriotically identify and expose those disrupting the markets.

"We request your cooperation as we implement upcoming regulations to govern these areas. We assure swift licensing for entities requiring SEC registration and will provide guidance and simplify processes," stated the SEC DG.

He expects crypto market players to adhere to the rules outlined in the Investments and Securities Act 2007.

"While some may argue the absence of specific rules, the existing Investments and Securities Act 2007 still applies, regardless of technology. We're also finalizing a digital asset regulatory framework, with stakeholder input, to cover various cryptocurrency activities," Agama added.

The forthcoming guidelines will cover a range of cryptocurrency ecosystem activities, ensuring comprehensive regulation and support for Nigerians contributing to economic development.

Agama expressed his commitment to establishing a regulatory environment that positions Nigeria as a leading digital asset hub in Africa, emphasizing the need for innovative solutions that balance innovation with national economic interests.

"We aim to foster a market that the President, concerned about our youth's involvement, and all of us can take pride in. Any actions undermining national interests will not be tolerated. The SEC, under Section 13 of the ISA, is responsible for regulating all capital market activities," he said.

Agama praised BICCoN's leadership and assured collaboration with all cryptocurrency ecosystem stakeholders to build a better nation.

"We value your partnership and input as we jointly tackle industry challenges. Your support is crucial as we strive to maintain ethical practices in our market and manage cryptocurrency trading activities, including P2P," he concluded.

Fintech Association Pledges Support

Dr. Babatunde Oghenobruche Obrimah, Chairman of the Fintech Association of Nigeria, lauded the SEC's initiatives and assured their dedication to the success of these regulatory efforts.

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