Nigeria’s SEC Authorises Quidax, Busha as Legal Crypto Exchanges

Nigeria’s Securities and Exchange Commission (SEC) has granted approval in principle to two cryptocurrency exchanges, Quidax and Busha, officially recognizing them as legal crypto trading platforms in the country.

EKO HOT BLOG reports that these approvals were issued under the Commission’s Accelerated Regulatory Incubation Program (ARIP). Additionally, the SEC has admitted four other companies—Trovotech Ltd, Wrapped CBDC Ltd, Dream City Capital, and HousingExchange.NG Ltd—into its Regulatory Incubation (RI) Program to test their business models and technologies.

In a statement released on Thursday, the SEC clarified that these firms are not the only applicants; other submissions are under assessment and will receive approval in principle on a case-by-case basis as they meet all regulatory requirements.

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“The SEC uses this medium to reiterate that only approved digital exchanges and platforms are legally authorized to carry out the business of crypto trading in any form in Nigeria.

“In this regard, the ARIP and RI remain the only avenues for well-intentioned entities to legitimately introduce their digital products and services to the Nigerian capital market.

“The public is strongly advised to refrain from dealing with illegal operators who have not applied to and received the SEC’s approval under the ARIP or the RI Program.

Digital Exchange

“Intending investors are also reminded to always confirm from the various SEC information portals whether entities purporting to provide investment services are legally empowered to do so,” the Commission stated.

The ARIP was introduced by the SEC to onboard firms that had begun operations before the release of the Rules on Virtual Asset Service Providers in May 2022, following calls for regulation in the crypto industry. The RI Program, on the other hand, was established to evaluate Digital Assets firms’ business models and test innovative products, services, and technologies in a real-time market environment under the SEC’s close supervision.

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The SEC noted that the first set of companies approved will test its regulatory model, with the results influencing future policy development in Nigeria’s crypto space.

Despite Nigerian authorities’ generally negative stance on crypto trading, Nigerians continue to engage in digital asset transactions, with reports consistently ranking Nigeria among the top countries for cryptocurrency trading globally.

Industry stakeholders have attributed recent controversies surrounding crypto exchanges and alleged currency manipulation via peer-to-peer (P2P) crypto trading to the Central Bank of Nigeria’s (CBN) policies. They argue that the CBN’s distancing from the market has allowed bad actors to manipulate the currency, tarnishing the reputation of legitimate players in the industry.

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