Nigeria’s Securities and Exchange Commission (SEC) has taken a step towards regulating the cryptocurrency market in the country.

On August 29, 2024, the SEC announced that it has granted an Approval-in-Principle to two crypto exchanges, Quidax and Busha, recognizing them as legally authorized crypto trading platforms.

The approval was part of the SEC’s Accelerated Regulatory Incubation Program (ARIP), which aims to provide a structured framework for digital asset companies to operate under strict regulatory oversight.

Also, the approval marks a major milestone in the formalization and regulation of digital assets in Nigeria. Quidax and Busha, two well-established names in the Nigerian cryptocurrency space, are now authorized to offer cryptocurrency trading and related services to the public, under close supervision by the SEC.

ATTENTION: Click “HERE” to join our WhatsApp group and receive News updates directly on your WhatsApp!

The “approval-in-principle” allows the companies to begin operations and further develop their platforms while undergoing rigorous evaluations to ensure full compliance with regulatory standards.

READ ALSO: FG Plans New Taxes, Regulation for Cryptocurrency by September

SEC’s ARIP was designed to balance innovation with investor protection and market integrity. The program is a response to stakeholders’ calls for regulation in the crypto trading space.

It introduced ARIP to strategically on-board firms that had commenced operations prior to the release of the Rules on Virtual Asset Service Providers in May 2022.

Furthermore, the program aims to assess the business models of digital assets firms and test innovative products, services, and technology in a real-time market environment under close supervision by the SEC.

Despite the negative posture of Nigerian authorities towards crypto trading, many Nigerians continue to transact with digital assets, with Nigeria recognized as one of the top countries trading in cryptocurrencies globally.

Stakeholders in the blockchain space had attributed the recent controversy surrounding crypto exchanges and alleged currency manipulation through peer-to-peer crypto trading to the policies and actions of the Central Bank of Nigeria (CBN), which they believed have created an environment conducive to bad actors.

SEC’s move is expected to pave the way for more digital asset companies to enter the Nigerian market, fostering innovation while ensuring investor protection and market integrity.