Nigeria’s SEC Provides Preliminary Approval to Two Cryptocurrency Companies

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

This provisional cryptocurrency license enables the companies to initiate operations under the Accelerated Regulatory Incubation Programme (ARIP), as reported by local news source The Punch.

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

Busha and Quidax Receive Regulatory Endorsement

Busha Digital Limited, one of the sanctioned exchanges, facilitates cryptocurrency transactions using fiat currency.

Through Busha’s mobile and web platforms, users can participate in a variety of cryptocurrency-related activities, such as buying, selling, storing, sending, receiving, trading, investing, and making payments.

Quidax Technologies Limited, the other entity that received in-principle approval, operates a cryptocurrency trading platform that utilizes blockchain technology.

The platform lists and trades existing crypto tokens, offering these services via a proprietary blockchain that is owned and operated 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

Alongside Busha and Quidax, the SEC announced that five additional firms have been accepted 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 created by the SEC to incorporate firms that had already commenced operations prior to the issuance of the Rules on Virtual Asset Service Providers in May 2022.

The RI Programme, as stated by the SEC, aims to assess the business models of digital asset companies and to trial innovative products, services, and technologies in a controlled market setting under SEC oversight.

The SEC emphasized that these approvals-in-principle represent an initial step toward full registration.

The ARIP and RI programs are the exclusive pathways for entities to launch their digital products and services in the Nigerian capital market.

Binance Legal Issues May Impact Nigeria’s Standing

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

BICCoN, which advocates for the Nigerian blockchain sector, called for a balanced resolution to these matters, highlighting the potential effects on the nation’s blockchain ecosystem and global standing.

The ongoing legal disputes and the detention of Binance executives have fostered an environment of uncertainty and risk, which could dissuade prospective investors and partners, according to BICCoN President Lucky Uwakwe.

Recently, US lawmakers French Hill and Chrissy Houlahan visited Kuje Prison in Nigeria, where detained Binance executive Tigran Gambaryan is currently held.

Hill characterized Gambaryan’s wrongful detention in what he referred to as a “horrible prison,” drawing attention to the health issues Gambaryan is experiencing while in custody.

On June 14, a court ruling exonerated Gambaryan and Anjarwalla of tax evasion charges.

However, despite being cleared of tax evasion, the Binance executive still faces a separate money laundering case.

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

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