Nigerian SEC Grants 'Approval-in-Principle' to Two Crypto Exchanges

The Nigerian Securities and Exchange Commission (Nigerian SEC) has granted “approval-in-principle” to two digital asset exchanges, Busha Digital Limited and Quidax Technologies Limited, to operate under its Accelerated Regulatory Incubation Programme (ARIP). This move reflects the SEC's commitment to fostering innovation in the capital markets while ensuring investor protection.

The Nigerian SEC announcement, made in Abuja on Thursday, noted that this ARIP cohort includes two digital asset exchanges, four digital asset offering platforms, and one digital asset custodian.

Busha Digital Limited offers a platform for buying and selling cryptocurrencies with fiat currency, enabling users in Nigeria and other developing economies to engage in basic digital asset investment services through mobile and web applications.

Quidax Technologies Limited provides a cryptocurrency trading platform in Nigeria, utilizing blockchain technology to list and trade crypto tokens on its proprietary blockchain. Its services include a digital wallet for storing, receiving, and transacting in various cryptocurrencies.

In addition, five firms—Trovotech Ltd, Wrapped CBDC Ltd, HousingExhange.NG Ltd, Dream City Capital, and Blockvault Custodian Ltd—have been admitted to the SEC's Regulatory Incubation Programme (RI) to test their models and technologies.

The ARIP was introduced to onboard firms that began operations before the Rules on Virtual Asset Service Providers were released in May 2022. The RI Programme is designed to evaluate business models and test innovative products in a real-world market environment under SEC supervision.

The SEC stated that these approvals are preliminary and aimed at ensuring that appropriate protection and transparency measures are in place. Full registration will follow once these criteria are met. The SEC emphasized that only approved digital exchanges and platforms are legally authorized to operate in Nigeria and advised the public to avoid dealing with unauthorized operators. Investors are encouraged to verify the legitimacy of investment services through the SEC’s information portals.