The Securities and Exchange Commission (SEC) has warned individuals and business entities engaging in activities contrary to laid-down regulations in the capital market.

The director-general of SEC, Emomotimi Agama, said in a statement in Abuja on Sunday that the commission would deploy the law on such defaulters.

Mr Agama said that the commission would soon commence enforcement against individuals and entities operating in the market without the intention of being regulated.

He said that the commission was committed to protecting investors, including those in the crypto space.

He urged all participants in the market to play by the rules.

”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.

”For those that do not want to play by the books, of course we will not allow them to operate within our space,” he said.

The director-general said that the commission issued Approval-in-Principle to two crypto exchanges because it observed that youths were becoming increasingly interested in the digital space.

Mr Agama said that it was important to provide regulation, clarity, and investors’ protection, which were the primary responsibilities of the SEC.

”All these we seek to do without hindering innovation, because part of our primary responsibility as the SEC is market development.

”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,” he said.

Mr Agama said that the commission had received numerous applications for exchanges, noting that it did not intend to flood the market with exchanges.

He said that the number of exchanges the commission would register in the future would be dependent on individuals and companies meeting the strict regulatory requirement set by the SEC.

The director-general said that the commission was taking various steps to ensure that citizens were safeguarded from any attempt to misinform them and rip them of their resources.

He said that the activities of crypto exchanges must be watched closely so that they do not impede the economy.

(NAN)