- Nigeria grants first crypto licenses, signaling a new regulatory approach.
- New regulations may attract foreign investments to Nigeria’s crypto market.
As a seasoned analyst with over two decades of experience in the global financial markets, I have witnessed numerous regulatory shifts that have shaped the evolution of various asset classes. In my career, I have closely followed the trajectory of cryptocurrencies, and I must admit, this latest move by Nigeria’s Securities and Exchange Commission (SEC) is nothing short of intriguing.
2024 saw considerable transformations in the worldwide cryptocurrency sphere, with countries such as Russia and Turkey implementing fresh regulations to control the expanding power of digital currencies at the beginning of the year.
Currently, Nigeria is taking significant steps forward by issuing the first permits to homegrown cryptocurrency trading platforms. This action marks a change in their stance towards digital money.
Nigeria’s new crypto move
On the 29th of August, as an analyst, I was pleased to note that the Nigerian Securities and Exchange Commission (SEC) took a forward-thinking action. They granted approval-in-principle licenses to Busha Digital Limited and Quidax Technologies Limited through their Accelerated Regulatory Incubation Program (ARIP). This move signifies a positive step towards fostering digital innovation within the Nigerian financial sector.
“Glad to be a part of this historical moment”
Remarking on the same, Buchi Okoro, Co-founder and CEO, Quidax said in a statement,
“We applaud the Securities and Exchange Commission (SEC), particularly under the guidance of Dr. Emomotimi Agama, for their courageous action in establishing order, fostering confidence, and safeguarding investors within our crypto industry. This move marks a significant victory for Nigeria’s acceptance of cryptocurrencies, and we are proud to be part of this groundbreaking event in history.”
That being said, the press release published by the Nigerian’s SEC on 29th August further added,
Just like with other organizations, five companies have been given permission to trial their models and technology within the Securities and Exchange Commission’s Regulatory Sandbox, or RI Program.
Here the five firms include Trovotech Ltd, HousingExchange.NG Ltd, Wrapped CBDC Ltd, Blockvault Custodian Ltd, and Dream City Capital.
All about the Nigerian SEC’s regulatory program
For those who might not know yet, Nigeria’s Securities and Exchange Commission (SEC) has created two specialized programs designed to monitor and control digital asset companies operating within the nation.
These software tools are designed to establish a strong framework for creating regulations that foster transparency and security in the realm of digital asset services.
The ARIP (Anti-Risk Initiative Program) has been implemented in response to updates by the Central Bank of Nigeria, primarily to facilitate the registration of Virtual Asset Service Providers (VASPs) and adjust regulations regarding the issuance, storage, and trading of digital assets.
In real-world situations, the Real-Time (RI) program examines the operational structures of digital currency companies. This evaluation aids in creating consistent regulations that adapt to the rapidly changing landscape of cryptocurrencies in Nigeria.
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2024-09-02 15:03