Nigeria’s Securities and Exchange Commission (SEC) is cracking down on crypto firms operating without regulation, aiming to enforce regulatory requirements, according to Director General Emomotimi Agama. The SEC recently issued licenses to compliant exchanges Quidax and Busha, with five other firms admitted under the Regulatory Incubation Program to test business models and technologies. The program evaluates digital asset companies’ operations and tests innovative products under SEC supervision. However, the country has blocked some exchanges, with the SEC introducing guidance to prevent criminals from registering as crypto operators. The actions come amid a legal dispute involving Binance and two executives, one of whom has been detained for over six months.
Agama emphasized that the SEC’s enforcement actions aim to secure and regulate the market without hindering innovation. The Blockchain Industry Coordinating Committee of Nigeria (BICCoN) expressed concerns over the legal disputes between Binance and the government, warning of potential implications for the country’s blockchain ecosystem and international reputation. BICCoN President Lucky Uwakwe highlighted the uncertainty and risks posed by the ongoing legal battles and detention of Binance executives, potentially deterring investors and partners. US lawmakers visited the prison where a detained Binance executive is held, raising concerns about his health and wrongful detention.
Despite being cleared of tax evasion charges, the Binance executive still faces a separate money laundering case. The BICCoN urged a balanced approach to resolving the legal issues to protect Nigeria’s blockchain industry and international standing. The ongoing legal disputes and detention of Binance executives have raised concerns about the reputation and stability of Nigeria’s blockchain ecosystem. Agama’s statement regarding the SEC’s enforcement efforts to promote market development without stifling innovation underscores the importance of creating a secure and regulated environment for the crypto market to thrive. The actions taken by the SEC reflect Nigeria’s cautious approach to cryptocurrencies and the need to ensure compliance with regulatory requirements.
