Quidax and Busha have made history as the first crypto exchanges to be legally recognized in Nigeria, paving the way for others in the industry.
The Nigerian Securities and Exchange Commission (SEC) has approved two crypto trading platforms to commence operations in Nigeria under the country’s Accelerated Regulatory Incubation Programme (ARIP). The agency endorsed two crypto exchanges, four crypto asset trading platforms, and one cryptocurrency custodian. The approvals have raised optimism in Nigeria’s crypto adoption as other crypto-related firms with pending applications await approval.
SEC Approves Busha and Quidax
As disclosed in a statement in the country’s capital, Abuja, on Thursday, the Nigerian SEC has granted Busha Digital Limited and Quidax Technologies Limited “Approval-in-Principle” to operate as crypto exchanges in Nigeria.
While the “Approval-in-Principle” does not mean full license, the SEC has expressed unwavering confidence in the approved firms, recognizing them as the only qualified crypto firms in the country. The commission’s statement serves as a reassurance.
“The SEC uses this medium to reiterate that only approved digital exchanges and platforms are legally authorized to carry out the business of crypto trading in any form in Nigeria,” the report added.
Following the approval, Quidax’s CEO and co-founder, Buchi Okoro, applauded the Nigerian SEC for its relentless efforts in regulating the country’s crypto market. He also recognized the contributions of the new SEC chairman, Emomotimi Agama, in ensuring investors’ safety and protection.
Additionally, the SEC has admitted Wrapped CBCD Ltd, Dream City Capital, Trovotech Ltd, and HousingExchange.NG in Nigeria to test its models and technology under the country’s Regulatory Incubation (RI) program. It designed the RI program to assess digital asset firms and test their products and services in the market under close monitoring by the SEC.
Relief for Crypto Firms in Nigeria
The Nigerian financial market has not been favorable for some popular crypto exchanges, as they face regulatory issues from the SEC. Local authorities have detained representatives of the world’s biggest exchange, Binance. OKX exchange has officially halted operations in Nigeria, while KuCoin has introduced taxes to its Nigerian users.
By approving Quidax and Busha in Nigeria, the SEC has shed a green light on crypto adoption, raising hopes that other exchanges can storm the Nigerian financial market. Further, the agency revealed that it still has applications from various crypto firms and will approve any that meets all the SEC requirements.
The SEC has set clear expectations for any crypto asset platform that wishes to operate in Nigeria, requiring a minimum of $315,000 (₦500 million) in capital and an active Fidelity Insurance Bond covering at least 25% of the capital. This information is crucial for potential entrants into the Nigerian crypto market.