Nigeria’s SEC Endorses Crypto Platforms Quidax and Busha: Report

The Nigerian Securities and Exchange Commission (SEC) has granted its first “approval-in-principle” to crypto exchanges Quidax and Busha. According to a local report, the decision was revealed via a statement in the country’s capital on August 29th. Notably, the latest regulatory move by the financial agency could set the pace for other global crypto trading platforms to enter the Nigerian financial market.

Nigeria to Welcome Crypto Exchanges

A Bloomberg report confirmed that the Nigerian SEC was exploring the possibilities of granting licenses to virtual asset providers, citing an interview with the agency’s Director-General, Emomotimi Agama. Fast forward to the present, the regulatory agency has followed through with its plan of embracing the crypto industry.

Quidax and Busha will operate under the Accelerated Regulatory Incubation Programme (ARIP), an initiative that onboard virtual asset providers and grants them access to offer products and services to local investors. The latest move by the Nigerian financial watchdog will allow both crypto exchanges to enable the buying, selling, storage, and trading of crypto assets.

Hinting that more crypto-based platforms are in the pipeline, the report added that five other firms have joined the SEC’s Regulatory Incubation Programme (RI), an initiative that allows fintech companies to operate under the regulatory agency’s close supervision.

Impact on the Nigerian Crypto Community

It is not entirely surprising that despite the Nigerian government’s previous stringent stance on crypto, the West African country remains one of the biggest ecosystems breeding crypto investors. In an earlier report, the country’s Federal Inland Revenue Service (FIRS) proposed a bill to tax crypto firms operating in Nigeria. The move was widely recognized as a shift towards regulatory clarity from the government.

As mentioned earlier, the Nigerian government once had a hostile outlook on the digital asset ecosystem. In 2021, the country’s sovereign bank banned crypto activities. Earlier this year, the country’s law authorities argued that Binance, the leading crypto exchange, played a role in crippling the Nigerian naira. For over six months, the West African country has detained and charged top Binance executives with criminal offences.

By taking a U-turn towards crypto adoption, the Nigerian crypto community is likely to grow and potentially capture the attention of prominent crypto exchanges.