SEC to crack down on illegal practices in capital market

Business a.m.

The Securities and Exchange Commission (SEC) has issued a stern warning to all market participants, stating its determination to use the full force of the law against any individual or entity that engages in activities that violate the established regulations of the capital market.

Emomotimi Agama, the director-general of SEC, in a statement presented at the weekend, reaffirmed the commission’s dedication to safeguarding the interests of investors, including those in the crypto market.

“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 also applies to those in the crypto space. We are sending this signal to all those that want to play by the books that they are welcome to our space. But for those that do not want to play by the books, of course we definitely will not allow them to operate within our space,” the SEC DG stated.

Agama disclosed that the recent decision to grant Approval-in-Principle to two crypto exchanges was made in recognition of the growing interest among Nigerian youths in the digital space.

Agama reiterated that the SEC’s primary responsibility is to protect investors, noting that the commission’s move was motivated by a desire to provide much-needed clarity, regulation, and investor protection in the rapidly expanding and often complex world of digital finance.

He stated further: “All this we seek to do without hindering innovation because part of our primary responsibility as the SEC is market development and we are aware that Mr. President is very interested in youths and the activities of youths.”

Emphasising that young people constitute the majority of individuals involved in the digital finance space, Agama stressed the importance of providing a well-regulated environment for these individuals.

The SEC DG  noted that the commission’s main responsibility is to provide guidance, clarity, and the necessary knowledge to ensure a safe and secure digital finance ecosystem for these individuals. He also explained that the commission’s recent move was a direct response to this responsibility, underscoring its commitment to providing a regulated space that protects investors in the digital finance space.

“It is important to understand that being the apex regulator of the capital market, we follow international guidelines and one of which is about disclosure. Full disclosure and making sure that they meet the Anti-Money Laundering and Combating the Financing of Terrorism reports and making sure that disclosures are made to investors and also education is important as well as a guided regulatory space,” he stated. 

Agama reiterated the commission’s determination to protect the Nigerian population from attempts to misguide and exploit them. Based on this, he emphasised the importance of monitoring the activities of crypto exchanges to prevent them from negatively impacting the national economy.

According to the SEC DG, providing clarity and understanding of the digital finance ecosystem is imperative to ensuring that all market participants comply with the rules and regulations, which are designed to promote investor protection, market integrity, and sustainable economic growth.

Agama concluded that securities regulation is a knowledge-based discipline, adding that the SEC is committed to providing its staff with the best possible education to ensure they are equipped to carry out their duties effectively.