Nigeria’s SEC Grants Approval to Two Digital Assets Exchanges Under Accelerated Regulatory Incubation Program
The Securities and Exchange Commission (SEC) in Nigeria has granted "Approval-in-Principle" to two digital assets exchanges, Busha Digital Ltd. and Quidax Technologies Ltd., to commence operation under the Accelerated Regulatory Incubation Program (ARIP).
The approval was announced by Efe Ebelo, the commission’s spokesperson, in a statement on Thursday in Lagos. The approval-in-principle is a precursor to the granting of full registration by SEC and aims to ensure that appropriate protection and transparency is in place for each product or service.
Busha Digital Ltd. operates a digital exchange that facilitates the buying and selling of crypto assets with fiat currency, enabling individuals and businesses in Nigeria and other developing economies to access basic digital asset investment services. The company’s customers can buy, sell, store, send, receive, trade, invest, and make payments in cryptocurrencies through its mobile and web applications.
Quidax Technologies Ltd., on the other hand, operates a cryptocurrency trading platform in Nigeria that leverages blockchain technology to list and trade already issued crypto tokens (assets). The platform provides a proprietary blockchain owned and controlled by Quidax, which is both web and mobile enabled for ease of access and use.
Both companies have been admitted to test their models and technology under the commission’s Regulatory Incubation (RI) Programme. The ARIP and RI programmes are aimed at enabling innovation in the digital asset space while guaranteeing the protection of investors.
The commission’s spokesperson reiterated that only approved digital exchanges and platforms are legally authorized to carry out the business of crypto trading in any form in Nigeria. She advised the public to refrain from dealing with illegal operators who have not applied to and received SEC’s approval under the ARIP or the RI programme, and to always confirm from various SEC information portals whether entities purporting to provide investment services are legally empowered to do so.
The outcome of the ARIP and RI programmes will inform further policy development in the space, and the commission will continue to work with the participating firms to agree on testing parameters and robust consumer safeguards.
