The Nigerian Securities and Exchange Commission (SEC) has recently approved two local crypto exchanges, namely Busha Digital Limited and Quidax, to operate under the Accelerated Regulatory Incubation Program (ARIP). This initiative is part of the SEC’s efforts to encourage innovation and protect investors in the digital asset space.
The Approval-in-Principle granted to Busha Digital Limited and Quidax represents a significant milestone in the regulation of cryptocurrency exchanges in Nigeria. These approvals pave the way for full registration by the SEC and demonstrate a commitment to ensuring transparency and protection for users.
CEO of Busha Digital Limited, Michael Adeyeri, expressed his enthusiasm for the approval, stating that it is a crucial step in sanitizing the crypto space for the benefit of the economy. This approval will provide Nigerian users with safe and regulated platforms for managing and trading crypto-assets, thereby increasing confidence in the digital asset market.
Regulatory Environment for Crypto Exchanges
While local exchanges like Busha Digital Limited and Quidax are gaining approval, global exchanges such as Binance and OKX are facing increased scrutiny from Nigerian authorities. Legal actions have been taken against Binance, and OKX was forced to exit the region due to non-compliance with local regulations. This highlights the importance of adhering to regulatory requirements in the cryptocurrency space.
In addition to the approval of Busha Digital Limited and Quidax, five other firms have been admitted under Nigeria’s Regulatory Incubation (RI) program. These firms, including Trovotech, Wrapped CBDC, HousingExchange.NG, Dream City Capital, and Blockvault Custodian, are part of the SEC’s efforts to evaluate innovative business models in a controlled environment. The SEC emphasizes that the ARIP and RI programs are essential for introducing products to the Nigerian capital market.
The approval of local crypto exchanges and the expansion of the regulatory incubation program signal a new era for the cryptocurrency industry in Nigeria. By fostering innovation and ensuring investor protection, the SEC is playing a pivotal role in shaping the future of digital asset trading in the country. As the regulatory landscape continues to evolve, it is essential for both local and global exchanges to comply with regulatory requirements to build trust and credibility in the market.
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