SEC Warns Nigerians Against Unregistered Digital Asset Platforms

ABUJA, Nigeria — The Securities and Exchange Commission (SEC) has issued a warning regarding the operations of CBEX, a digital asset trading platform, stating that platforms not registered with the SEC are operating illegally. This announcement comes amidst rising concerns and rumors about the platform’s potential closure due to user inaccessibility to funds.

During a virtual meeting with fintech stakeholders regarding the Investment and Securities Act (ISA 2025) on Monday, SEC Director General Emomotimi Agama cautioned Nigerians to avoid unregistered platforms. “If it is not registered, it is illegal,” he emphasized, calling attention to recent viral posts concerning CBEX’s activities, which have sparked fears of a Ponzi scheme.

Social media discussions intensified over the weekend as users expressed worries about their inability to withdraw funds. Agama’s comments come in light of the recent enactment of the ISA 2025, which outlines clear regulations for digital asset platforms, including mandatory registration to enhance transparency and safeguard investors. “The Act provides the SEC with the authority to combat illegal activities such as Ponzi schemes and unregistered exchanges,” he said.

Agama highlighted the need for all stakeholders, including celebrities promoting meme coins and other digital assets, to exercise caution. He asserted that irresponsible promotions could lead to adverse outcomes for the general public. The ISA 2025 grants the SEC enhanced powers to prosecute operators involved in fraudulent schemes that have historically exploited Nigerian investors.

Prior to the new legislation, the SEC struggled to bring Ponzi scheme operators to justice due to insufficient legal frameworks. The new law aims to empower regulators with the necessary tools to investigate and prosecute these operations effectively.

This call for action comes as the SEC aims to foster a safer investment environment amid uncertainty surrounding several trading platforms. As the digital asset space continues to grow in Nigeria, the SEC emphasizes the importance of compliance with regulations designed to protect investors from scams and ensure that only legitimate platforms operate within the market.

Samson Akintaro is a tech analyst with over a decade of experience in technology reporting and research.