Nigeria’s Securities and Exchange Commission (SEC) will take action against businesses and people who use bitcoin in ways that are not controlled. The government is taking this action to protect investors and encourage new ideas in the country’s digital asset market, which is growing very quickly.
The director-general of the SEC, Dr. Emomotimi Agama, said that the agency would not let anyone offer bitcoin services without proper control. He made it clear that the SEC is dedicated to keeping the market safe and clear for buyers. Agama said, “Those who don’t want to follow the rules will not be able to work in our space.”
The SEC’s statement comes after approving Busha Digital and Quidax Technologies, two local cryptocurrency platforms, on August 29. Even though more and more young people in Nigeria are interested in digital assets, these markets are the only ones that are officially controlled right now.
Agama emphasized the need for clear rules from regulators that protect investors while also encouraging new technologies. Anti-money laundering (AML) and combating the financing of terrorism (CFT) steps will also be under the SEC’s control to stop illegal actions in the crypto space.
Nigeria is a big player in the global bitcoin market, but the country has had trouble with inconsistent regulations. The Central Bank of Nigeria (CBN) banned banking institutions from working with cryptocurrency platforms in 2021. The Central Bank of Nigeria (CBN), however, lifted the ban in late 2023. However, in 2024, new rules limited peer-to-peer cryptocurrency trades that used the Nigerian naira.
Nigeria has also been a problem for global cryptocurrency platforms. One of the biggest platforms in the world, Binance, joined the Nigerian market in March 2024. Since then, its leaders have been in legal trouble.
The SEC’s most recent moves show that it is still committed to regulating the bitcoin market and encouraging new ideas. By being tough on companies that aren’t controlled, the commission hopes to make the market safer for investors.
