SEC Cautions Crypto Investors Against Unapproved Exchanges
The Securities and Exchange Commission has reiterated that only approved digital exchanges and platforms were legally authorised to carry out the business of crypto trading in any form in Nigeria.
In a statement obtained from its website on Monday, the SEC warned the public against dealing with illegal operators who have not applied to and received the commission’s approval under the Accelerated Regulatory Incubation Programme or the Regulatory Incubation Programme.
The SEC emphasised that ARIP and RI remained the only avenues for well-intentioned entities to legitimately introduce their digital products and services to the Nigerian capital market.
The commission advised intending investors to always confirm from the various SEC information portals whether entities purporting to provide investment services are legally empowered to do so.
“Intending investors are also reminded to always confirm from the various SEC information portals whether entities purporting to provide investment services are legally empowered to do so,” it noted.
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The capital market regulator had introduced the ARIP to strategically onboard firms that had commenced operations before the release of the Rules on Virtual Asset Service Providers in May 2022.
The RI Programme was created to assess the business models of digital asset firms and test innovative products, services and technology in a real-time market environment under close supervision by the SEC, the regulator said.
Last week, the SEC approved in principle two digital asset exchanges, Busha Digital Limited and Quidax Technologies Limited, and admitted five firms to test their models and technology under the RI Programme.
The Director-General of SEC, Dr Emomotimi Agama, attributed the recent approval of two cryptocurrency exchanges to the growing enthusiasm among young Nigerians for digital assets.
He underlined the need for a transparent regulatory framework that safeguards investors while fostering innovation.
The SEC DG stressed that comprehensive disclosure, robust anti-money laundering measures, and effective counter-terrorism financing protocols are crucial elements of the SEC’s regulatory approach in the cryptocurrency sector.
