The Nigerian Securities and Exchange Commission (SEC) has recently announced the granting of “Approval-in-Principle” to two local crypto exchanges, Busha Digital Limited and Quidax. This approval comes as part of the Accelerated Regulatory Incubation Program (ARIP) and is a step towards ensuring compliance with upcoming regulations in the digital asset space. The SEC aims to balance innovation with investor protection through these approvals, setting the stage for a more regulated crypto ecosystem in Nigeria.
Following the approval, Busha CEO Michael Adeyeri expressed that this was a necessary step to clean up the crypto space for the benefit of the economy. He emphasized the importance of providing Nigerian crypto users with safe and regulated platforms for managing and trading their assets. This sentiment aligns with the SEC’s goal of fostering transparency and protection in the market.
The approval of local exchanges comes at a time when Nigerian authorities are cracking down on global exchanges such as Binance and OKX. Legal actions have been taken against these platforms, with OKX being forced to exit the region due to non-compliance with local regulations. In contrast, the SEC’s ARIP and RI programs offer a pathway for compliant entities to operate in the Nigerian capital market.
In addition to Busha and Quidax, five other firms have been admitted under Nigeria’s Regulatory Incubation (RI) program. These include Trovotech, Wrapped CBDC, HousingExchange.NG, Dream City Capital, and Blockvault Custodian. The purpose of these programs is to evaluate the business models of digital asset firms and test innovative products in a controlled environment. By providing a structured framework for regulatory compliance, the SEC aims to nurture a thriving ecosystem of crypto exchanges in Nigeria.
The SEC’s proactive approach to regulating the digital asset space in Nigeria signals a new era of compliance and transparency for crypto exchanges. By granting approvals to local platforms like Busha and Quidax, the regulator is setting a precedent for responsible innovation in the market. As the crypto industry continues to evolve, collaboration between regulators and industry players will be crucial in shaping a sustainable and secure ecosystem for digital asset trading in Nigeria.
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