SEC Grants Approval-in-Principle To 2 Digital Asset Exchanges

The Securities and Exchange Commission (SEC) has granted ‘approval-in-principle’ to two digital asset exchanges, marking a crucial step under its Accelerated Regulatory Incubation Programme (ARIP).

This decision aligns with the SEC’s goal of fostering innovation while ensuring investor protection.

The companies receiving this approval are Busha Digital Limited and Quidax Technologies Limited. Busha Digital operates a platform that facilitates the buying and selling of cryptocurrency using fiat currency. This digital exchange caters to individuals and businesses in Nigeria and other developing nations, offering a range of services through mobile and web applications. Users can buy, sell, store, send, receive, trade, invest, and make payments with cryptocurrencies.

Quidax Technologies Limited provides a cryptocurrency trading platform that uses blockchain technology to list and trade existing crypto tokens. Its platform, available via web and mobile applications, also includes a digital wallet for storing, receiving, and transacting in various cryptocurrencies.

In addition to these approvals, the SEC admitted five firms into its Regulatory Incubation Programme (RI). These firms—Trovotech Ltd, Wrapped CBDC Ltd, HousingExhange.NG Ltd, Dream City Capital, and Blockvault Custodian Ltd—will test their models and technology under the SEC’s supervision.

The ARIP and RI Programme are designed to onboard and evaluate digital asset firms, assessing their business models and technological innovations. This process ensures that new products and services meet regulatory standards and consumer protection requirements.

The SEC highlights that only entities approved under these programs are legally authorised to operate crypto trading businesses in Nigeria. The commission urges the public to verify the legitimacy of digital asset services through its official information channels to avoid dealings with unauthorised operators.

This approval marks a crucial development for Nigeria’s digital asset market, highlighting the SEC’s commitment to integrating innovative financial technologies while safeguarding investor interests.