Nigeria’s SEC Approves Two Crypto Exchanges in Principle

Nigeria’s Securities and Exchange Commission (SEC) has granted provisional licenses for two trading platforms to begin operations in the country. The two crypto exchanges are Busha Digital Limited and Quidax Technologies Limited.

Per local media in the West African country, the issued licenses will allow the exchanges highlighted above to begin operations under the Accelerated Regulatory Incubation Programme (ARIP). Interestingly, aside from the two digital asset exchanges, the ARIP cohort included four digital asset offering platforms and one digital asset custodian.

Nature of the Two Approved Crypto Exchanges in Nigeria

Quidax Technologies Limited, one of the recently approved trading platforms, operates a crypto exchange with blockchain technologies at the center of its functionalities. Quidax boasts web and mobile-enabled access for users, making the trading platform seamless and encompassing. In addition to the mobile and web-enabled features, Quidax utilizes a digital wallet that allows potential customers to transact in varying cryptocurrencies.

Similarly, Busha Digital Limited will operate as a trading platform. However, it would utilize fiat currencies in its market-enabling functionalities. Additionally, it will serve as a platform for individuals, businesses, and other developing economies that aim to access basic crypto and digital assets trading services. Like Quidax, it also has web and mobile enabling options that make buying, selling, or storing crypto assets a worthwhile experience.

Five Other Firms Undergoing Tests

Nigeria's SEC has disclosed that it received applications from five other firms. The platforms are currently under admission. Admission with the SEC entails accessing the individual outlet models technology under the SEC’s Regulatory Incubation initiative.

Per the SEC, the five outlets included Blockvault Custodian Limited, Trovotech Limited, Wrapped CBDC Limited, Dream City Capital, and HousingExchange.NG Limited. The number of platforms awaiting approval with the SEC underscores Nigeria's position as one of Africa's crypto powerhouse.

How events unfold remains fluid. However, the provisional licenses issued for the two local trading platforms signify faith in crypto in Nigeria despite regulatory hurdles.

Disclaimer: This article is intended solely for informational purposes and should not be considered trading or investment advice. Nothing herein should be construed as financial, legal, or tax advice. Trading or investing in cryptocurrencies carries a considerable risk of financial loss. Always conduct due diligence before making any trading or investment decisions.

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