The Nigerian Securities and Exchange Commission (SEC) has recently granted Approval-in-Principle to two local crypto exchanges, Busha Digital Limited and Quidax, allowing them to commence operations under the Accelerated Regulatory Incubation Program (ARIP). This move signifies the SEC’s commitment to fostering innovation while ensuring investor protection within the digital asset space.
The Approval-in-Principle granted to Busha Digital Limited and Quidax by the SEC is a significant step towards creating a more regulated crypto trading environment in Nigeria. As part of the ARIP, these exchanges will be closely monitored to ensure that necessary protection and transparency measures are in place for the benefit of users and the economy as a whole.
Impact on Nigerian Crypto Users
Busha CEO Michael Adeyeri welcomed the approval, emphasizing that it will provide Nigerian crypto users with safe and moderated local venues for managing and trading their assets. This regulatory approval is seen as a positive development that will help in sanitizing the crypto space and enhancing the overall ecosystem for digital asset trading in Nigeria.
The approval of local exchanges comes at a time when Nigerian authorities are cracking down on global exchanges like Binance and OKX. Legal actions have been taken against Binance, and OKX has been forced to exit the region due to non-compliance with local regulations. The regulatory landscape in Nigeria is evolving, with a focus on ensuring compliance and protecting investors.
In addition to Busha Digital Limited and Quidax, five other firms have been admitted under Nigeria’s Regulatory Incubation (RI) program. This program allows digital asset firms to test innovative products in a controlled environment and evaluate their business models. The SEC has reiterated that the ARIP and RI programs are the legitimate avenues for introducing new products to the Nigerian capital market.
Overall, the approval granted to local crypto exchanges and the expansion of the Regulatory Incubation Program reflect the SEC’s commitment to creating a secure and regulated environment for digital asset trading in Nigeria. As the regulatory landscape continues to evolve, it is essential for all stakeholders to comply with local regulations and prioritize investor protection. By fostering innovation and ensuring transparency, Nigeria aims to become a key player in the global digital asset market.
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