The Securities and Exchange Commission (SEC) says individuals and business entities engaging in activities contrary to regulations in the capital market and cryptocurrency space will face the law.
Emomotimi Agama, director-general of SEC, spoke in a statement on Sunday.
Agama said the commission would soon commence enforcement against individuals and entities operating in the market without the intention of being regulated.
He said SEC is committed to protecting investors, including those in the crypto space.
“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,” Agama said.
“This also applies to those in crypto space.
“We are sending this signal to all those who want to play by the books that they are welcome to our space.
“For those that do not want to play by the books, of course, we will not allow them to operate within our space.”
Agama said the commission issued approval-in-principle to two crypto exchanges because it observed that youths were becoming increasingly interested in the digital space.
The SEC boss said it is important to provide regulation, clarity, and investors’ protection, which are the primary responsibility of the agency.
“All these we seek to do without hindering innovation because part of our primary responsibility as the SEC is market development,” he said.
“Clearly, the majority of persons involved in this space are the youth, therefore, providing a regulated space for these individuals is a primary responsibility of SEC.
“We had to provide a guide, clarity and the knowledge it requires to put all of these things in place, and that is why we have done what we did.
“Full disclosure and making sure that they meet the anti-money laundering and combating financing of terrorism report. Also, education is important as well as a guided regulatory space.”
Agama noted that l the commission received numerous applications for exchanges, but said it did not intend to flood the market with them.
According to the SEC chief, the number of exchanges the commission would register in the future would be dependent on individuals and companies meeting the strict regulatory requirements set by the agency.
The director-general also said the commission is taking various steps to ensure that citizens are safeguarded from any attempt to misinform them and rip them off their resources.
He said the activities of crypto exchanges must be watched closely so that they do not impede the economy.
