Nigeria’s SEC Grants Two Crypto Firms Approval in Principle

The Securities and Exchange Commission (SEC) of Nigeria has granted approval in principle to two digital asset exchanges, Busha Digital Limited and Quidax Technologies Limited.

The provisional crypto license allows the firms to commence operations under the Accelerated Regulatory Incubation Programme (ARIP), according to a report by local news outlet The Punch.

The report said that the ARIP cohort includes two digital asset exchanges, four digital asset offering platforms, and one digital asset custodian.

Busha and Quidax Gain Regulatory Approval

Busha Digital Limited, one of the approved exchanges, facilitates the buying and selling of cryptocurrencies using fiat currency.

Through Busha’s mobile and web applications, users can engage in various cryptocurrency-related activities, including buying, selling, storing, sending, receiving, trading, investing, and making payments.

Quidax Technologies Limited, the other firm granted approval in principle, runs a cryptocurrency trading platform that leverages blockchain technology.

The platform lists and trades existing crypto tokens, providing these services through a proprietary blockchain owned and managed by the company.

Press Release:
Update on the SEC’s Accelerated Regulatory Incubation Program and
Regulatory Incubation Program

Find details in the link below:https://t.co/vwtbJowUDx

— SEC Nigeria (@SECNigeria) August 29, 2024

In addition to Busha and Quidax, the SEC announced that five other firms have been admitted to test their business models and technologies under the SEC’s Regulatory Incubation Program (RI).

These companies include Trovotech Ltd, Wrapped CBDC Ltd, HousingExchange.NG Ltd, Dream City Capital, and Blockvault Custodian Ltd.

The ARIP was established by the SEC to integrate firms that had already begun operations before the issuance of the Rules on Virtual Asset Service Providers in May 2022.

The RI Programme, according to the SEC, is designed to evaluate the business models of digital asset companies and to test innovative products, services, and technologies in a controlled market environment under SEC supervision.

The SEC noted that these approvals-in-principle are a preliminary step toward full registration.

The ARIP and RI programs remain the sole avenues for entities to introduce their digital products and services in the Nigerian capital market.

Binance Legal Drama Could Damage Nigeria’s Reputation

In June, the Blockchain Industry Coordinating Committee of Nigeria (BICCoN) expressed concerns over the ongoing legal disputes between cryptocurrency exchange Binance and the Nigerian government.

BICCoN, which represents the Nigerian blockchain industry, urged a balanced approach to resolving these issues, noting the potential implications for the country’s blockchain ecosystem and international reputation.

The ongoing legal battles and detention of Binance executives have created an atmosphere of uncertainty and risk, potentially deterring potential investors and partners, according to BICCoN President Lucky Uwakwe.

Just recently, US lawmakers French Hill and Chrissy Houlahan made a visit to Kuje Prison in Nigeria, where detained Binance executive Tigran Gambaryan is being held.

Hill described Gambaryan’s wrongful detention in what he called a “horrible prison,” bringing attention to the health concerns Gambaryan is facing while in custody.

On June 14, there was a court ruling that cleared Gambaryan and Anjarwalla of tax evasion charges.

However, despite being cleared of tax evasion charges, the Binance executive still has a separate money laundering case to deal with.

Previously, Binance CEO Richard Teng accused a Nigerian government official of pressuring crypto representatives to accept a secret agreement to settle Nigeria’s claims against the exchange.