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Nigeria's Securities and Exchange Commission (SEC) was preparing action against individuals and cryptocurrency exchanges that did not comply with its regulatory framework.
Local outlet Nairametrics reported that SEC director-general Dr Emomotimi Agama announced the move on Sunday, pledging stronger investor protection.
Less than two weeks earlier, the SEC had granted provisional approval to digital asset exchanges Busha and Quidax to begin operating under its Accelerated Regulatory Incubation Programme.
Nigeria's SEC targets unlicensed exchanges
Despite stronger regulatory efforts, many crypto exchanges and platforms continued operating without explicit approval. The commission warned the public against dealing with unauthorised entities, noting that many operated in the country.
Agama said the commission would take legal action against market operators unwilling to accept regulation and would not allow entities that broke the rules to operate in Nigeria.
Growing crypto adoption drives demand for regulation
Agama said strong interest in digital assets among young Nigerians had prompted approval of the two exchanges. He argued that a clear framework could protect investors and encourage innovation.
He also stressed full disclosure and described strong AML measures as central to Nigeria's crypto regulatory strategy.
Binance faces scrutiny in Nigeria
Earlier that year, Nigerian authorities detained two Binance executives during a crackdown on crypto platforms, accusing them of contributing to economic instability through currency speculation and naira depreciation. The executives initially faced money-laundering charges involving $35.4 million.
Tax-evasion charges were subsequently dropped, while the investigation shifted towards Binance itself, particularly allegations of illegal banking transactions. The government also alleged that Binance misled Nigerians about the legality of its activities and manipulated the foreign-exchange market.
