Nigeria’s Securities and Exchange Commission (SEC) has granted "Approval-in-Principle" to two digital asset exchanges, Busha Digital Ltd. and Quidax Technologies Ltd., allowing them to operate under the Accelerated Regulatory Incubation Program (ARIP). The announcement was made by SEC spokesperson Efe Ebelo in Lagos on Thursday, highlighting the commission's commitment to fostering innovation in the capital market while ensuring investor protection.
The approval is part of SEC’s ongoing efforts to support the growth of the digital asset market in Nigeria. The current cohort under the ARIP includes two digital asset exchanges, four digital asset offering platforms, and one digital asset custodian.
Busha Digital Ltd. operates an exchange that enables the buying and selling of cryptocurrencies using fiat currency. The platform, accessible via mobile and web applications, allows users in Nigeria and other developing markets to buy, sell, store, trade, and make payments in digital assets.
Quidax Technologies Ltd., on the other hand, provides a cryptocurrency trading platform that utilizes blockchain technology to list and trade existing crypto tokens. The platform supports digital wallets, allowing users to store, receive, and transact in a variety of cryptocurrencies, and is available on both mobile and web.
In addition to Busha and Quidax, five other companies—Trovotech Ltd., Wrapped CBDC Ltd., HousingExchange.NG Ltd., Dream City Capital, and Blockvault Custodian Ltd.—have been admitted into SEC’s Regulatory Incubation (RI) Programme to test their business models and technologies. The RI Programme is designed to help firms that began operations before the implementation of SEC’s Rules on Virtual Asset Service Providers in May 2022 to align with regulatory requirements.
Ebelo noted that the ARIP and RI programmes reflect the increasing adoption of distributed ledger technology (DLT) in the trading of crypto assets. The outcome of these initiatives will contribute to future policy developments within the digital asset space. SEC will conduct short-term and small-scale tests with participating firms to evaluate their products and establish robust consumer protection measures.
The Approval-in-Principle granted to these firms is a preliminary step toward full registration by SEC, aimed at ensuring proper oversight and transparency. Ebelo emphasized that only entities approved through the ARIP and RI programmes are authorized to engage in crypto trading in Nigeria.
She cautioned the public against engaging with unauthorized operators and urged prospective investors to verify the legitimacy of digital asset platforms through SEC’s information portals. “ARIP and RI are the legitimate pathways for entities to introduce digital products and services to Nigeria’s capital market,” Ebelo stated, stressing the importance of compliance with SEC regulations for all market participants.
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