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The Nigerian Securities and Exchange Commission (SEC) has officially announced the names of cryptocurrency companies permitted to operate within the country. According to the press release, this development comes as Nigeria intensifies its efforts to regulate the burgeoning digital asset sector.
SEC to Ensure Market Integrity at all Times
Amid ongoing regulatory debates, the SEC has approved selected companies to ensure that the digital asset market operates within a secure and well-defined framework. The SEC gave two digital asset exchanges “Approval-in-Principle,” allowing them to begin operations under the SEC’s Accelerated Regulatory Incubation Program (ARIP).
These exchanges, Busha Digital Limited and Quidax Technologies Limited have met the requirements to advance Nigeria’s cryptocurrency ecosystem. Busha Digital allows the buying and selling crypto assets using fiat currency, while Quidax Technologies uses blockchain technology to list and trade issued crypto tokens or assets.
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In addition to these approvals, five other firms have been admitted into the SEC’s Regulatory Incubation Program (RI). This program allows companies to test their business models and technologies under a controlled regulatory environment, enabling them to innovate while ensuring they comply with established legal standards.
No Company Will Bycut the ARIP and RI Programs, SEC Confirmed
The firms’ inclusion demonstrates the SEC’s commitment to fostering innovation in the digital asset space while safeguarding investors and ensuring market integrity. These platforms include Trovotech Ltd, Wrapped CBDC Ltd, and HousingExchange.NG Ltd, Dream City Capital, and Blockvault Custodian Ltd.
Notably, the SEC emphasized that the ARIP and RI programs remain the only legal avenues for companies seeking to introduce digital products and services to Nigeria’s capital markets. By creating a structured regulatory path for cryptocurrency firms, the SEC aims to mitigate risks associated with the largely unregulated nature of digital assets, including issues related to fraud, money laundering, and market instability.
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Meanwhile, other firms have applied for the ARIP and RI Programs. However, the regulator is taking time to access their applications and will issue the Approval-in-Principle once they meet the requirements.
Nigeria’s SEC Role in Crypto Regulation
Nigeria’s regulatory bodies have begun to address the complexities surrounding cryptocurrency regulation. The SEC has amended its rules on digital asset issuance and the operations of platforms, exchanges, and custodians. These amendments create a more responsive and robust regulatory framework for the evolving digital asset markets.
A March report highlighted Nigeria’s SEC proposal to increase the registration fees for crypto exchanges. In addition to these regulatory efforts, there has been growing advocacy among Nigerian stakeholders for Bitcoin (BTC) and Ether (ETH) classification as commodities. Such a classification could integrate these digital assets into Nigeria’s economic fabric, providing clearer guidelines for their use and taxation.
