Nigeria's Securities and Exchange Commission (SEC) has granted provisional approval to two digital asset exchanges, Busha Digital Limited and Quidax Technologies Limited. This marks a significant step in the country’s evolving regulatory landscape for cryptocurrencies.
The preliminary licenses allow these firms to begin operations under the Accelerated Regulatory Incubation Programme (ARIP), as reported by local news outlet The Punch. This program is designed to integrate and oversee emerging digital asset companies within a structured regulatory framework.
Busha and Quidax Secure Regulatory Green Light
Busha Digital Limited, one of the approved exchanges, enables users to buy and sell cryptocurrencies using fiat currency. Through its mobile and web platforms, Busha offers a range of cryptocurrency services, including trading, investing, and payments.
Quidax Technologies Limited, the other firm granted approval, operates a cryptocurrency trading platform that utilizes blockchain technology. Quidax’s platform lists and trades various crypto tokens, providing these services via a proprietary blockchain managed by the company.
Additional Firms Admitted to Regulatory Testing
In addition to Busha and Quidax, the SEC has admitted five other firms to test their business models and technologies under its Regulatory Incubation Program (RI). These companies include Trovotech Ltd, Wrapped CBDC Ltd, HousingExchange.NG Ltd, Dream City Capital, and Blockvault Custodian Ltd.
The ARIP and RI programs were established to support firms that were operational before the SEC issued its Rules on Virtual Asset Service Providers in May 2022. These initiatives aim to evaluate digital asset companies and test innovative products, services, and technologies in a controlled market environment under SEC supervision.
The SEC emphasized that these approvals-in-principle are preliminary steps toward full registration, and the ARIP and RI programs remain the only avenues for introducing digital products and services in Nigeria's capital market.
Binance Legal Issues Threaten Nigeria’s Crypto Reputation
Meanwhile, Nigeria’s cryptocurrency industry faces challenges amid ongoing legal disputes between Binance and the Nigerian government. The Blockchain Industry Coordinating Committee of Nigeria (BICCoN) has expressed concerns about the potential damage to the country’s blockchain ecosystem and international reputation.
BICCoN President Lucky Uwakwe warned that the legal battles and detention of Binance executives could create an atmosphere of uncertainty, deterring potential investors and partners.
In a related development, U.S. lawmakers French Hill and Chrissy Houlahan recently visited Kuje Prison in Nigeria, where detained Binance executive Tigran Gambaryan is being held. Hill highlighted concerns over Gambaryan’s health and wrongful detention.
Although Gambaryan was cleared of tax evasion charges on June 14, he still faces a separate money laundering case. Binance CEO Richard Teng has previously accused a Nigerian government official of pressuring crypto representatives to accept a secret settlement to resolve Nigeria’s claims against the exchange.
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