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Nigerian regulator vows to combat crypto fraud

Nigerian regulator vows to combat crypto fraud

GrafaGrafa2024/10/10 03:45
By:Isaac Francis

The Nigerian Securities and Exchange Commission (SEC) has renewed its commitment to combat fraud, money laundering, and market manipulation within the cryptocurrency sector. 

During the International Organization of Securities Commissions World Investor Week, SEC Director General Emomotimi Agama emphasised the importance of educating investors and enforcing strict measures against illegal crypto platforms.

Agama highlighted that as financial products become more complex and technology-driven, particularly with the rise of fintech innovations and cryptocurrency trading, it is vital to equip investors with the knowledge to navigate these markets responsibly. 

He stressed the need for collaboration among stakeholders to ensure that investors can confidently participate in the crypto market.

In recent months, the SEC has taken significant steps to regulate the crypto industry in Nigeria. 

The agency has approved the country’s first digital asset exchanges and amended its rules for virtual asset service providers (VASPs). 

These changes included the introduction of the Accelerated Regulatory Incubation Program (ARIP), designed to support the onboarding of crypto entities in compliance with Nigerian regulations. 

This move demonstrates the SEC's dedication to combating illegal platforms and ensuring the safe development of the country's cryptocurrency ecosystem.

Lagos State Governor Babajide Sanwo-Olu also voiced his support for the SEC’s efforts to regulate the crypto space. 

He acknowledged the potential of cryptocurrencies to democratise finance but warned of the associated risks. 

“While the potential of cryptocurrencies to democratise finance is significant, we must also be mindful of the risks they introduce, particularly in areas of regulation, security, and investor protection,” Sanwo-Olu stated.

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