Nigeria's Securities and Exchange Commission (SEC) has issued provisional licences to digital asset exchanges Quidax and Busha, marking a significant step in the country's evolving stance on cryptocurrency regulation. The move comes just a week after the SEC hinted at plans to roll out its first crypto licences, ending months of uncertainty surrounding the regulatory environment for digital assets in Africa's largest economy. “These Approvals-in-Principle are a precursor to full registration by the SEC and are designed to ensure that proper protection and transparency measures are in place for each product or service,” the SEC said in a statement on Thursday. The licences allow Quidax and Busha to operate under the SEC’s Accelerated Regulatory Incubation Program (ARIP), a framework introduced in July 2024 to integrate existing crypto exchanges into the formal regulatory fold. The ARIP was created following the SEC’s release of guidelines for virtual asset service providers in May 2022. “The license admits the startups into the SEC’s accelerated regulatory incubator, enabling us to study them and develop appropriate rules to guide their operations,” said SEC Director General Emomotimi Agama in a call with TechCabal. Busha CEO Michael Adeyeri welcomed the development, stating on X, “Millions of Nigerian crypto enthusiasts and users deserve safe and regulated local venues for managing and trading crypto-assets. This is an overdue step to sanitize the space for the benefit of the economy, in line with global expectations.” Quidax also confirmed it had received the provisional licence, further solidifying the regulator's intent to bring clarity and structure to Nigeria’s burgeoning crypto market. This development comes after a period of heightened regulatory scrutiny of crypto exchanges in Nigeria. In early 2024, the SEC proposed a ban on peer-to-peer (P2P) trading, attributing it to volatility in the foreign exchange market. The SEC’s recent actions mark a notable policy shift as it seeks to balance innovation with market stability.
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