The SEC noted that these Approvals-in-Principle are a precursor to full registration, intended to ensure that appropriate protections and transparency are in place for each product or service.
Abuja, Nigeria – The Securities and Exchange Commission (SEC) has given the green light to two digital asset exchanges, Busha Digital Limited and Quidax Technologies Limited, granting them “Approval-in-Principle” to begin operations as part of its Accelerated Regulatory Incubation Program (ARIP).
In a statement released yesterday in Abuja, the Commission also disclosed that five additional firms have been admitted to test their models and technologies under SEC’s Regulatory Incubation program (RI). These firms are Trovotech Ltd, Wrapped CBDC Ltd, HousingExchange.NG Ltd, Dream City Capital, and Blockvault Custodian Ltd.
The Commission explained that the current cohort includes two Digital Asset Exchanges, four Digital Asset Offering Platforms, and one Digital Asset Custodian.
Busha Digital Limited operates a digital exchange facilitating the buying and selling of crypto assets using fiat currency. Their platform, available on both mobile and web applications, allows customers to buy, sell, store, send, receive, trade, invest, and make payments in cryptocurrencies.
Quidax Technologies Limited, another recipient of the Approval-in-Principle, runs a cryptocurrency trading platform in Nigeria. This platform utilizes blockchain technology to list and trade already issued crypto tokens (assets) and offers digital wallets for users to store, receive, and transact in a variety of cryptocurrencies. Quidax’s platform is accessible via both web and mobile applications.
The ARIP was introduced by SEC to onboard firms that had already commenced operations before the release of the Rules on Virtual Asset Service Providers in May 2022. The RI program was created to assess the business models of Digital Assets firms and test innovative products, services, and technologies in a real-time market environment under close supervision by SEC.
The Commission emphasized that this cohort is marked by the increased use of distributed ledger technology (DLT) in creating and trading crypto assets. Tests will be conducted on a short-term and small-scale basis, with SEC working closely with participating firms to establish testing parameters and ensure robust consumer safeguards.
The SEC noted that these Approvals-in-Principle are a precursor to full registration, intended to ensure that appropriate protections and transparency are in place for each product or service.
The SEC reiterated that only approved digital exchanges and platforms are legally authorized to conduct crypto trading in Nigeria, emphasizing that the ARIP and RI programs are the legitimate avenues for entities to introduce their digital products and services to the Nigerian capital market.
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