The Nigerian Securities and Exchange Commission (SEC) recently announced that two local crypto exchanges, Busha Digital Limited and Quidax, have received “Approval-in-Principle” to commence operations under the Accelerated Regulatory Incubation Program (ARIP). This move comes as part of the SEC’s efforts to encourage innovation while ensuring investor protection in the digital asset space. The approvals granted are seen as a precursor to full registration, ensuring that appropriate protection and transparency measures are in place for each product or service offered by these exchanges.
Busha CEO Michael Adeyeri emphasized the significance of this approval, stating that it is a long overdue step to legitimize the crypto space and benefit the economy. With local exchanges now authorized to operate, Nigerian crypto users will have access to safe and regulated platforms for managing and trading their assets. This development is crucial at a time when global exchanges like Binance and OKX are facing regulatory scrutiny and restrictions in the country.
In addition to Busha and Quidax, the SEC also admitted five other firms under Nigeria’s Regulatory Incubation (RI) program. This initiative aims to assess the business models of digital asset firms and test innovative products in a controlled environment. The newly registered firms include blockchain platform Trovotech, Nigerian stablecoin provider Wrapped CBDC, real-estate token platform HousingExchange.NG, digital real-estate investment firm Dream City Capital, and custodial service provider Blockvault Custodian. By participating in these programs, entities can introduce their products to the Nigerian capital market through legitimate channels.
The SEC’s approval of local crypto exchanges and other digital asset firms signals a positive direction for the crypto industry in Nigeria. As more companies join regulatory programs and comply with the guidelines set forth by the SEC, it is likely that the crypto ecosystem in the country will become more robust and secure. With a focus on investor protection and transparency, these initiatives can help build trust among users and investors in the digital asset space, ultimately contributing to the growth and legitimacy of the industry in Nigeria.
Leave a Reply