The Nigerian Securities Commission has announced strong measures to tackle illegal cryptocurrency exchanges, licensing its first two exchanges, marking a major milestone in regulating the market.
On August 29, the SEC officially licensed two exchanges, Quidax and Busha, making them the first legal cryptocurrency exchanges in Nigeria . This is considered a new step in regulating the cryptocurrency market, which is growing strongly but lacking strict control in this country.
Accordingly, licensed exchanges must strictly comply with regulations on anti-money laundering (AML), combating the financing of terrorism (CFT), customer identity verification and reporting of suspicious activities. In addition, they must maintain a minimum charter Capital of 500 million Naira and have a credit insurance worth at least 25%.
SEC Executive Director Emomotini Agama said that strict sanctions will be imposed on any individual or entity that engages in cryptocurrency trading without a license. The penalties include a minimum fine of 5 million Naira and daily fines for continued violations. The regulation was issued in a circular dated June 21, aimed at strengthening the regulation of cryptocurrency activities in Nigeria.
According to Mr. Agama, the licensing of Quidax and Busha is an important step in meeting the growing demand for digital assets in Nigeria, while ensuring investors have a safe and transparent trading environment. The SEC is committed to building a clear and transparent legal framework that protects the interests of investors and encourages innovation in the cryptocurrency sector.
The SEC also emphasized the importance of cracking down on illegal cryptocurrency exchanges to prevent fraud, protect investors, and maintain economic stability. The commission said it will continue to XEM and license other exchanges that meet the requirements, through programs such as the Accelerated Regulatory Incubation Program (ARIP) and the Regulatory Incubation Program (RI).
The Nigerian SEC’s crackdown on illegal cryptocurrency exchanges is expected to help clean up the market, build investor confidence, and promote sustainable growth of the cryptocurrency industry in Nigeria.
