The Nigerian Securities and Exchange Commission (SEC) has granted two local crypto exchanges Busha Digital Limited and Quidax “Approval in principle” to begin operations under the Accelerated Regulatory Incubation Program (ARIP), according to an August 29 press release.
ARIP was specifically designed to onboard businesses operating ahead of the May 2022 publication of the Virtual Asset Service Provider rules.
These approvals therefore represent the SEC’s continued efforts to foster innovation while ensuring investor protection in the digital asset sector. The regulator stated:
“The aforementioned approvals in principle are a precursor to the granting of full registration by the SEC and are intended to ensure that appropriate protection and transparency are in place for each product or service.”
Busha CEO Michael Adeyeri said the approval was “a long-awaited step to clean up the space for the benefit of the economy.” He noted that the approval would allow Nigerian crypto users to access “safe and moderated local venues for crypto asset management and trading.”
The granting of local exchange licenses comes as authorities crack down on global exchanges like Binance and OKX.
In recent months, the Nigerian government has taken legal action against the Binance exchange and also forced OKX to leave the region due to non-compliance with local regulations.
Other approved companies
The financial regulator also announced that five other companies have been admitted under Nigeria’s Regulatory Incubation (RI) programme.
The RI program is designed to evaluate digital asset companies’ business models and test innovative products in a controlled environment.
Companies listed under the program include blockchain platform Trovotech, Nigerian stablecoin provider Wrapped CBDC, and real estate token platform HousingExchange.NG. Others listed include digital real estate investment firm Dream City Capital and custody service provider Blockvault Custodian.
The SEC reiterated that its ARIP and RI programs are the only legitimate avenues for “well-meaning entities” to present their products in the Nigerian financial market. It added:
“The public is strongly advised to refrain from dealing with illegal operators who have not sought and received SEC approval under ARIP or the RI Program.”
