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Nigeria's SEC grants approval to crypto exchanges Quidax and Busha in regulatory shift

Nigeria's SEC grants approval to crypto exchanges Quidax and Busha in regulatory shift

Nigeria's Securities and Exchange Commission (SEC) has made a pivotal move in the regulation of the cryptocurrency market by granting "Approval-in-Principle" to two digital asset exchanges, Quidax and Busha. This approval allows these platforms to operate legally under the SEC's Accelerated Regulatory Incubation Program (ARIP), a step towards establishing a more structured and secure environment for cryptocurrency operations in the country.

Alongside Quidax and Busha, four other companies—Trovotech Ltd, Wrapped CBDC Ltd, Dream City Capital, and HousingExhange.NG Ltd—have been admitted to the SEC's Regulatory Incubation (RI) Program. These firms will be permitted to test their business models and technologies in a controlled environment, furthering innovation in the digital asset sector.

The SEC has clarified that these approvals are preliminary and serve as a pathway to full registration, emphasizing that only authorized exchanges and platforms are permitted to conduct crypto trading in Nigeria. The Commission also warned the public against engaging with unapproved operators, urging investors to verify the legitimacy of investment services through official SEC information portals.

This regulatory effort is a response to growing demands for oversight in the cryptocurrency sector, particularly following the introduction of rules for Virtual Asset Service Providers in May 2022. The ARIP and RI Program aim to assess the business models of digital asset firms and test innovative products under strict supervision.

Despite past regulatory challenges, including a crackdown on peer-to-peer trading, Nigeria remains a significant player in the global cryptocurrency market. The SEC's recent actions reflect a commitment to aligning Nigeria with international regulatory standards while fostering a safer environment for digital asset transactions.

As the SEC continues to evaluate additional applications for these programs, it aims to develop comprehensive policies that will govern the rapidly evolving digital asset landscape in Nigeria, ensuring that only well-intentioned entities can introduce their products and services to the market.

Published August 30, 2024 by GamblingTalk