Nigeria to Introduce Strict Control over Cryptocurrencies
Date: 2025-04-04 Author: Oliver Abernathy Categories: IN WORLD
The legislative changes provide for mandatory registration of crypto exchanges and virtual asset service providers (VASPs) with the SEC, which allows the state body to officially regulate the digital asset market.
According to SEC Chairman Emomotimi Agama, the main goal of the law is to protect the interests of investors and reduce the risks associated with fraud and other systemic threats. Agama believes that thanks to these changes, Nigeria will be able to attract more investment from both local entrepreneurs and foreign companies. It is also expected that the innovations will strengthen public confidence in blockchain technologies and cryptocurrency instruments.
The bill provides for tough measures against the organizers of cryptocurrency pyramids. Those found guilty face imprisonment for more than 10 years, as well as a minimum fine of 10 million Nigerian naira (approximately $ 6,500). In case of serious violations, the fines can reach 40 million Nigerian naira (about $26,000). These measures are aimed at eradicating fraud and creating a safe investment environment.
Last year, the Nigerian SEC already warned about the activities of the cryptocurrency exchange Marino FX, which claimed to have a license without having officially received it. The country's authorities also threatened to prosecute those crypto companies that ignore the rules related to the fight against money laundering (AML) and terrorist financing.
The introduction of new rules demonstrates Nigeria's desire to establish effective control over the developing cryptocurrency market. This allows the SEC not only to protect the rights of investors, but also to promote the development of technologies, creating conditions for their safe use in the country.
