In recent developments, the Nigerian Securities and Exchange Commission (SEC) has granted Approval-in-Principle to two local crypto exchanges, Busha Digital Limited and Quidax, allowing them to commence operations under the Accelerated Regulatory Incubation Program (ARIP). This move comes as part of the SEC’s efforts to facilitate innovation while ensuring investor protection within the digital asset space.
The Approval-in-Principle granted to Busha Digital Limited and Quidax signifies a significant step towards the regulation of crypto exchanges in Nigeria. It serves as a precursor to full registration by the SEC, ensuring that appropriate protection and transparency measures are in place for each product and service offered by these exchanges. The SEC’s commitment to fostering a safe and regulated environment for crypto users highlights the importance of maintaining integrity within the industry.
Busha CEO, Michael Adeyeri, emphasized the approval as a necessary measure to sanitize the crypto space for the benefit of the economy. With these approvals, Nigerian crypto users can now access secure and regulated local platforms for managing and trading crypto-assets. This development is crucial in providing users with a safer alternative to global exchanges like Binance and OKX, which have faced scrutiny from Nigerian authorities in recent months.
In addition to Busha Digital Limited and Quidax, the SEC has admitted five other firms under Nigeria’s Regulatory Incubation (RI) program. These firms, including Trovotech, Wrapped CBDC, HousingExchange.NG, Dream City Capital, and Blockvault Custodian, represent a diverse range of digital asset providers operating within the Nigerian market. The RI Program serves as a platform for evaluating business models and testing innovative products under controlled conditions, ensuring compliance with local regulations.
As the SEC continues to implement regulatory initiatives such as ARIP and RI programs, the landscape for crypto exchanges in Nigeria is evolving towards a more structured and transparent ecosystem. By providing avenues for well-intentioned entities to introduce their products to the Nigerian capital market, the SEC is reinforcing its commitment to promoting innovation while safeguarding investor interests. The approval of local crypto exchanges and the admission of diverse digital asset firms under regulatory programs are indicative of a progressive approach to regulating the crypto industry in Nigeria.
