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The Nigerian Securities and Exchange Commission is planning to commence enforcement action against individuals and crypto companies that are operating in the country.

According to local media outlet Nairametrics, Dr. Emomotimi Agama, the Director-General of Nigerian SEC, stated the reason behind the enforcement action is to protect investors. 

“We are certainly going to commence enforcement actions on anyone who wants to operate in this market without the intention of being regulated. For those that do not want to play by the books, we will not allow them to operate within our space”

Nigeria’s attempt to regulate and manage the crypto space started back in 2021 when the Central Bank of Nigeria (CBN) prohibited transactions in cryptocurrency. The ban was criticized by its citizens.

In fact, one pro-Bitcoin politician, James Otudor, filed a landmark lawsuit against government entities such as the CBN, the Nigerian SEC and the President of Nigeria. According to Otudor, the lawsuit aims to “safeguard the fundamental human rights of all Nigerians.”

The lawsuit claimed that the government’s restriction was a violation of Article 14 of the African Charter on Human and People Rights, which guarantees the right to property, which can only be limited in the interest of public need or community welfare.

The lawsuit filed by Otudor seeks the immediate removal of the block on all crypto exchange online platforms.

Although CBN had banned crypto transactions, Nigeria’s SEC — amid the lawsuit with Otudor — announced that they have granted “Approval-in-Principle” to two digital asset exchanges, Busha Digital Limited and Quidax Technologies Limited. 

Nigeria’s government regulatory claimed that they will continue to assess the applications received from other entities and will grant Approval-in-Princple on a “case-by-case basis as they meet all SEC requirements.”