Nigerian SEC Embraces Crypto with First Exchange Licenses

The Nigerian Securities and Exchange Commission (SEC) has granted its first crypto exchange licenses, signalling a significant shift in the country's stance on digital assets.

Despite previous tensions between the government and the crypto industry, two firms, Busha Digital Limited and Quidax Technologies Limited, have received “approval-in-principle” to operate.

This approval is part of the SEC's Accelerated Regulatory Incubation Program (ARIP), which aims to integrate innovation into the capital market while ensuring investor protection.

Accelerated Compliance for Crypto Firms

Launched in June, the ARIP fast-tracks virtual asset service providers (VASPs) into compliance with updated regulations.

Firms were given 30 days to apply or face potential enforcement actions.

This initiative reflects a collaborative effort, as noted by Quidax CEO Buchi Okoro, who praised the SEC's leadership in fostering order and confidence in the industry.

related reading：Nigerian Senate Committee Advocates Regulation of Crypto Trading for Strengthening Local Currency

Multi-Stakeholder Participation in the Regulatory Incubation (RI) Program

Aside from Busha and Quidax, the SEC has admitted five other firms to its Regulatory Incubation (RI) program.

These include blockchain platform Trovotech, stablecoin provider Wrapped CBDC, real-estate token platform HousingExchange.NG, investment platform Dream City Capital, and custody service Blockvault Custodian.

More firms are under assessment and may receive approval on a case-by-case basis.

Tensions with Binance Executives

While these developments indicate progress, tensions remain with global crypto giants.

Notably, two Binance executives have been detained in Nigeria over the company's local operations, with their trial set to commence soon.

related reading：Binance CEO Urges Nigerian Government to Release Detained

Nigeria's Crypto Adoption and Regulatory Balance

Nigeria ranks second globally in crypto adoption per capita, according to Chainalysis.

The SEC’s recent moves suggest a careful balancing act—embracing innovation while maintaining strict regulatory oversight.