The Securities and Exchange Commission (SEC) has granted approval in principle to two prominent digital asset exchanges, Busha Digital Limited and Quidax Technologies Limited.
These approvals, part of the SEC’s Accelerated Regulatory Incubation Programme (ARIP), represent the beginning of a new chapter for crypto trading in Nigeria.
This development was announced by the SEC in a statement on Thursday, which highlighted the importance of this move in the evolving landscape of digital assets and blockchain technology in the country.
Both Busha and Quidax, well-established players in the Nigerian crypto space, will now be able to operate under this regulatory framework, fostering more secure and transparent trading platforms for the nation’s growing number of crypto enthusiasts.
Busha Digital, known for its accessible digital exchange platform, allows individuals and businesses to buy, sell, store, and invest in cryptocurrencies using fiat currency.
Its services are aimed at providing easy access to basic digital asset investment for users across Nigeria and other developing economies.
The platform, available through mobile and web applications, has gained popularity for its user-friendly interface and commitment to making crypto investment seamless and safe for Nigerians.
Quidax Technologies, another major player, operates a cryptocurrency trading platform leveraging blockchain technology.
The exchange facilitates trading in a variety of cryptocurrencies and provides users with a digital wallet for secure transactions.
Quidax’s platform is both mobile and web-enabled, offering a wide range of crypto tokens for trading, making it a key player in the adoption of digital currencies in Nigeria.
According to the SEC, the current ARIP cohort includes two digital asset exchanges, four digital asset offering platforms, and one digital asset custodian.
This programme was designed to assess the business models of digital asset firms and allow them to test their innovative products, services, and technologies in a controlled environment.
The outcome will inform future policies in the digital asset space.
Speaking on the significance of the ARIP programme, the SEC explained that the approvals are a precursor to full registration, ensuring that appropriate safeguards are in place to protect investors and promote transparency in the cryptocurrency sector.
“The RI (Regulatory Incubation) Programme was created to assess the business models of digital assets firms and test innovative products, services, and technology in a real-time market environment under close supervision by the SEC,” the commission stated.
The approval of Busha and Quidax is seen as a major step forward in bringing legitimacy to Nigeria’s burgeoning cryptocurrency market, which has faced regulatory uncertainty in recent years. These digital asset exchanges will now operate under SEC’s guidance, ensuring that users of the platforms can trade with more confidence and security.
The SEC also took the opportunity to remind the public to only engage with approved digital platforms and urged caution when dealing with unregulated crypto exchanges.
“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,” the commission advised.
This approval comes at a time when cryptocurrencies are gaining traction globally, and Nigeria has become one of the leading markets for crypto adoption in Africa.
With Busha Digital and Quidax now moving forward under SEC oversight, the future of cryptocurrency trading in Nigeria looks set for greater growth, innovation, and regulation.
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