Nigeria’s Securities and Exchange Commission (SEC) has officially granted operational approvals to several crypto-focused service operators.
In a statement published on Thursday, August 29, the securities regulator announced that it has issued “Approvals-in-Principle” to seven firms: Busha Digital Limited, Quidax Technologies Limited, Trovotech Ltd, Wrapped CBDC Ltd, HousingExhange.NG Ltd, Dream City Capital, and Blockvault Custodian Ltd.
According to the regulator, these approvals are preliminary steps toward complete registration, designed to ensure adequate protection and transparency for each product or service offered.
The approved entities include two Digital Asset Exchanges, four Digital Asset Offering Platforms, and one Digital Asset Custodian. The SEC noted that these companies will operate under the Accelerated Regulatory Incubation Program (ARIP), launched in July 2024, to integrate crypto exchanges that started operations before the SEC’s May 2022 rules for virtual asset service providers. The regulator emphasized that only these approved digital exchanges and platforms are legally authorized to conduct crypto trading in Nigeria.
Busha’s CEO, Michael Adeyeri, expressed enthusiasm about the development, highlighting the importance of safe and regulated local platforms for Nigerian crypto enthusiasts. He noted in a post on X that this was a;
“crucial step toward sanitizing the space for the benefit of the economy and aligning with global standards.”
Notably, this development represents a formal acceptance of cryptocurrencies within Nigeria’s financial landscape and paves the way for regulated crypto activities. It comes just one week after the regulator announced its intention to issue its first set of crypto licenses.
It also follows Finance Minister Wale Edun’s recent call to address cryptocurrency regulation complexities. At the inauguration of the new governing board of the SEC in July 2024, Edun stressed the need for strong oversight in the rapidly evolving crypto sector to ensure market integrity, cautioning against potential misuse of minimal registration requirements.
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