Nigeria’s SEC has released new guidelines to better regulate the working of crypto firms. The new guidelines are aimed at curbing money laundering cases and fraud related to digital currencies, according to The Daily Post. The update in working guidelines also comes at a time when one of the biggest crypto exchanges, Binance is facing scrutiny in the country.
According to the Daily Post, new rules have been created by the Securities and Exchange Commission (SEC) to license, register, and inspect virtual asset service providers (VASPs). The initiative has been aimed at better regulating financial markets and ensuring that the capital market would be protected from “criminals being registered as operators.”
The report also highlights that the acronym for the new guidelines is AML/CFT/CPF, which stands for Anti-Money Laundering/Counter-Financing of Proliferation/Combating the Financing of Terrorism.
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Nigeria’s new measures come at a time when the country is already tightening its grip on the digital asset market. One of the biggest cryptocurrency exchanges in the world, Binance, made headlines lately when it revealed that it intended to stop offering Nigerian Naira (NGN) services in response to increased scrutiny by the country’s CEX. Given its prior legal history in the country, Binance seemed to have come under more scrutiny amidst the recent crackdown on cryptocurrency exchanges in that West African nation.
In keeping with Nigeria’s recent crypto crackdown, Binance also tried to help its users keep their assets safe. The company demonstrated its efforts to guarantee regulatory compliance across the country, reiterating its dedication to collaborating with local authorities. But it quickly faced a setback when the executives of its Nigerian affiliate were arrested during the aforementioned regulatory sweep. Even if there were tidings that Binance would face a $10 billion fine, Nigeria’s authorities denied any such comments, which fueled concerns about the country’s impending crackdown on cryptocurrencies.
In addition, Nigeria made fun of well-known exchanges like Coinbase and Kraken, matching Binance’s criticism.
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