SEC Grants Two Cryptocurrency Firms Approval to Operate

The Securities and Exchange Commission (SEC) has granted “approval-in-principle” to two digital asset exchanges, Busha Digital Limited and Quidax Technologies Limited, under its Accelerated Regulatory Incubation Programme (ARIP). This milestone marks a significant step forward in Nigeria’s evolving digital asset landscape.

In a statement released on Thursday, the SEC outlined the importance of these approvals, which come just a week after the commission announced its intention to license virtual asset service providers, including those dealing in cryptocurrencies. This move is seen as a strategic effort to support the growing adoption of digital assets among Nigerian youth while ensuring investor protection.

The SEC’s ARIP initiative, designed to foster innovation while maintaining regulatory oversight, includes several cohorts. The current group consists of two digital asset exchanges, four digital asset offering platforms, and one digital asset custodian. These companies will undergo a phased testing process to ensure compliance and operational integrity.

Busha Digital Limited, one of the approved exchanges, facilitates the buying and selling of cryptocurrencies using fiat currency. The platform offers basic digital asset investment services, enabling individuals and businesses in Nigeria and other developing economies to engage in cryptocurrency transactions via mobile and web applications.

Quidax Technologies Limited, the second approved firm, operates a cryptocurrency trading platform in Nigeria. The platform utilizes blockchain technology to list and trade various crypto tokens. Quidax also provides digital wallets for users to store, receive, and transact in multiple cryptocurrencies, with services accessible through both web and mobile interfaces.

The SEC also announced the inclusion of five additional firms—Trovotech Ltd, Wrapped CBDC Ltd, HousingExhange.NG Ltd, Dream City Capital, and Blockvault Custodian Ltd—into its regulatory incubation programme. These companies will test their business models and technologies under the SEC’s close supervision to ensure they meet regulatory standards.

The ARIP and Regulatory Incubation (RI) Programmes were introduced to provide a structured environment for digital asset firms to innovate while complying with regulatory requirements. The programmes emphasize the use of distributed ledger technology (DLT) in creating and trading crypto assets, with outcomes from the testing process expected to inform future policy development.

The SEC highlighted that the current approvals-in-principle are preliminary steps toward full registration, aimed at ensuring robust consumer protection and transparency in the digital asset market. The commission also noted that other applications are under review and will be assessed on a case-by-case basis.

In its advisory, the SEC urged the public to engage only with approved digital exchanges and platforms, emphasizing that the ARIP and RI programmes are the legitimate channels for introducing digital products and services to the Nigerian capital market. The commission further advised potential investors to verify the legal status of entities offering investment services through official information portals.