Nigeria Takes a Bold Step: Two Crypto Exchanges Get Approval While Warning Against Scams!

The Nigerian Securities and Exchange Commission (SEC) has granted “approval-in-principle” to Busha Digital and Quidax Technologies, marking them as the first digital asset exchanges to operate legally in Nigeria. Furthermore, four additional digital asset offering platforms and one custodian have joined the SEC's regulatory incubation program to test their technologies.

Nigerian Regulator’s Expedited Onboarding Program

On August 29, the SEC announced the approval of the two exchanges under the Accelerated Regulatory Incubation Program (ARIP). This initiative aims to hasten the process for entities applying for licenses, allowing successful applicants to receive provisional approval to operate while awaiting comprehensive digital asset regulations.

Residents Warned Against Unauthorized Entities

The SEC has issued a stern warning to the Nigerian public to steer clear of unauthorized operators. Investors are urged to confirm the legitimacy of service providers on the SEC’s official platforms. The current participants in the ARIP and RI programs utilize distributed ledger technology (DLT) for creating and trading crypto assets, which will inform future policy developments. The SEC is actively assessing further applications from digital asset exchanges, promising similar approvals for compliant entities. Stay vigilant and verify before engaging with any investment services!