Nigeria’s SEC Strengthens Crypto Regulations Via New Rules

• The SEC has issued new regulations on the licensing, registration, and inspection of VASPs.
• The revision of operating standards coincides with Binance now under investigation.

In an effort to better control the operations of cryptocurrency companies, the Nigerian SEC has issued new regulations. Reportedly, this new set of rules is an effort to reduce instances of digital currency fraud and money laundering. The revision of operating standards coincides with the fact that Binance, a leading cryptocurrency exchange, is now under investigation in the nation.

Moreover, as per reports, the SEC has just issued new regulations on the licensing, registration, and inspection of virtual asset service providers (VASPs). The initiative’s stated goal is to safeguard the capital market against “criminals being registered as operators” and to improve market regulation generally.

Ongoing Feud

Concurrent with the implementation of these new regulations, Nigeria is further consolidating government control over the digital asset market. Binance, one of the largest cryptocurrency exchanges in the world, recently made news when it announced its intention to cease providing services in Nigerian Naira (NGN) due to heightened scrutiny in the nation.

Binance seems to have been singled out more during the recent crackdown on crypto exchanges in the nation, perhaps due to its past legal issues in the country.

Moreover, Binance likewise made an effort to assist its customers in safeguarding their investments in light of Nigeria’s recent crypto crackdown. Reiterating its commitment to working with local authorities, the firm showcased its efforts to ensure regulatory compliance across.

But it encountered an immediate obstacle when, in the course of the above regulatory motion, the officials of its Nigerian branch were reportedly apprehended. Concerns about an imminent crackdown on cryptocurrencies in Nigeria were heightened when Nigerian officials refuted any remarks suggesting Binance would be subject to a $10 billion punishment.

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