The Nigerian Securities and Exchange Commission (SEC) has given the green light to two companies, Busha Digital and Quidax Technologies, to operate as legal cryptocurrency exchanges. This move marks a significant step towards regulating the crypto market in Nigeria.
The SEC created a program called the Accelerated Regulatory Incubation Program (ARIP) to bring existing crypto businesses into the fold. Busha Digital and Quidax Technologies are the first two companies to receive approval under this program.
The ARIP allows businesses that were already operating before official crypto regulations were introduced to apply for licenses. This helps ensure established companies can operate legally while the SEC monitors their activities.
The SEC is also launching a separate program called the Regulatory Incubation (RI) Program. This program allows new crypto businesses to test their ideas and technology in a controlled environment under the SEC’s supervision.
Several companies have been admitted to the RI program, including platforms for launching new cryptocurrencies and businesses offering secure storage for crypto assets.
The SEC emphasizes investor protection as a top priority. The approvals granted to Busha Digital and Quidax Technologies are not full licenses but a “precursor” to full registration. This means the SEC will continue to monitor these companies to ensure they operate safely and transparently.
The SEC also warns Nigerians against dealing with any crypto companies that haven’t been approved by the commission. Investors are advised to check the SEC website to confirm a company’s registration status before investing.
The SEC’s actions represent a move towards a more organized and regulated crypto market in Nigeria. This could benefit both investors and businesses by providing greater clarity and security.
The ARIP and RI programs offer existing and new crypto businesses a pathway to operate legally. Additionally, the SEC’s focus on investor protection aims to create a safer environment for Nigerians interested in cryptocurrency.
The SEC’s decisions mark a turning point for the Nigerian crypto market. With clearer regulations and approved businesses, Nigerians can now participate in the crypto space with more confidence. The success of the ARIP and RI programs will likely determine how the Nigerian crypto market develops in the future.
