SEC Targets Unregulated Crypto Operators in Nigeria

The Director-General of the Securities and Exchange Commission (SEC), Emomotimi Agama, has issued a stern warning to market operators who wish to operate without supervision or refuse to abide by established rules. He made this statement in Abuja on Sunday, underscoring the SEC's commitment towards safeguarding investors.

Agama expressed concern over certain participants' inclination to flout regulations in their operations. He emphasized that such disregard for rules is unacceptable as it poses significant risks to investors. The Director-General urged all market players to adhere strictly to the guidelines set forth by the commission, cautioning that legal measures would be taken against those found guilty of defaulting.

He stated: "We are certainly going to commence enforcement actions on anyone who wants to operate in this market and does not have the intention of being regulated." This declaration also extends its reach into the burgeoning crypto space which has seen a surge of interest from Nigerian youth.

Agama further noted that while innovation is encouraged, it must not come at the expense of regulatory compliance or investor protection - both primary responsibilities of SEC. Acknowledging recent approval given 'in principle' for two crypto exchanges, he explained that this move was necessitated due largely because Nigerian youths have shown increasing interest in digital currencies.

However, Agama stressed on ensuring these activities do not hamper economic progress and stability. According him: "All these we seek to do without hindering innovation because part of our primary responsibility as SEC is market development."

Taking cognizance of majority involvement from younger demographics within cryptocurrency exchanges; providing a regulated environment becomes even more crucial. It’s important that they fully understand anti-money laundering laws and combating financing terrorism reports alongside other mandatory requirements set by SEC – thus ensuring they're well-equipped with necessary knowledge required for smooth functioning within guided regulatory spaces.

Furthermore, Agama revealed there were several applications received for new exchanges but insisted flooding markets with multiple platforms isn't intended; the focus is rather on ensuring strict adherence to regulatory requirements. The number of registered exchanges in future would be dependent on individuals and companies meeting these stringent standards.

The Director-General concluded by assuring citizens that SEC was taking necessary steps to protect them from misinformation or potential scams. He reiterated the commission's commitment towards maintaining market integrity, ensuring transparency and protecting investors' interests – a clear signal for all operators within Nigeria’s financial markets to play by the rules or face repercussions.