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The Securities and Exchange Commission (SEC) has issued a stern warning to individuals and businesses engaging in activities that violate regulations within the capital market. In a statement released on Sunday, SEC’s Director-General, Dr. Emomotimi Agama, emphasized that the commission will take legal action against defaulters who operate outside the regulatory framework.
Dr. Agama highlighted that the SEC is preparing to initiate enforcement actions against entities and individuals attempting to bypass regulation. He reaffirmed the commission’s commitment to safeguarding investors, including those involved in cryptocurrency.
“We are determined to begin enforcement actions against anyone seeking to operate in the capital market without adhering to regulatory standards,” Agama stated. “This applies not only to traditional market participants but also to those in the cryptocurrency sector. We welcome those willing to comply with the rules but will not tolerate any entity that seeks to operate outside of the regulatory space.”
The Director-General noted that the SEC had granted Approval-in-Principle to two cryptocurrency exchanges, recognizing the increasing interest of young people in digital finance. The commission’s decision aims to ensure that this growing sector remains properly regulated while protecting investors.
“It’s critical to provide clear regulation, investor protection, and market transparency, especially in the crypto space where youths are actively participating,” Agama explained. “Our goal is to regulate without stifling innovation. Market development is one of our core responsibilities at the SEC, and ensuring that a regulated framework exists for young investors is part of this mission.”
Dr. Agama emphasized the importance of education and regulatory guidance for market participants. He noted that the SEC’s regulatory oversight includes ensuring full disclosure, anti-money laundering (AML) compliance, and combating the financing of terrorism (CFT).
“Education is essential, as is a well-guided regulatory space. We must ensure that all platforms meet strict reporting standards, including AML and CFT protocols,” Agama said.
He also revealed that the SEC has received numerous applications from other cryptocurrency exchanges, but clarified that the commission would limit approvals to entities that meet its stringent regulatory criteria.
“We don’t intend to flood the market with exchanges. Future approvals will be based on compliance with the SEC’s strict regulatory standards,” Agama stated.
The Director-General concluded by reaffirming the SEC’s efforts to protect citizens from misinformation and fraudulent schemes, particularly in the evolving digital finance landscape. He underscored the need for close monitoring of crypto exchanges to prevent any negative impact on the economy.
“Crypto exchanges must be closely monitored to ensure they do not disrupt the broader economy or exploit investors,” he said, emphasizing the SEC’s role in safeguarding the financial market.
This regulatory approach signals the SEC’s focus on promoting a secure and transparent investment environment while fostering innovation within Nigeria’s growing digital finance ecosystem.
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