The Securities and Exchange Commission has granted approval in principle to two digital asset exchanges, Busha Digital Limited and Quidax Technologies Limited, allowing them to commence operations under the Accelerated Regulatory Incubation Programme.
In a statement made available to our correspondent on Thursday, the SEC disclosed that the current ARIP cohort included two digital asset exchanges, four digital asset offering platforms, and one digital asset custodian.
Highlighting the operations of Busha Digital, the SEC stated, “Busha operates a digital exchange that facilitates the buying and selling of crypto assets with fiat currency. It enables individuals and businesses in Nigeria and other developing economies to access basic digital asset investment services. Busha’s customers use the mobile and web applications to buy, sell, store, send, receive, trade, invest and make payments in cryptocurrencies.”
On Quidax Technologies, the commission added, “Quidax Technologies Limited operates a cryptocurrency trading platform in Nigeria. The platform leverages blockchain technology to list and trade already issued crypto tokens (assets). The services are provided via a proprietary blockchain owned and controlled by Quidax. The exchange platform is both web and mobile-enabled for ease of access and use. Quidax also utilises a digital wallet to enable its users to store, receive, and transact in a variety of cryptocurrencies.”
The SEC also announced that five other firms had been admitted to test its models and technology under the SEC’s Regulatory Incubation Program (RI).
The admitted firms include Trovotech Ltd, Wrapped CBDC Ltd, HousingExchange.NG Ltd, Dream City Capital, and Blockvault Custodian Ltd.
The SEC introduced the ARIP to onboard firms that had begun operations before the release of the Rules on Virtual Asset Service Providers in May 2022.
Explaining the purpose of the RI programme, the commission stated, “The RI 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.
“Specifically, the current cohort of the ARIP and the RI Programme is characterised by the increased use of distributed ledger technology in creating and trading crypto assets. The outcome of the process would inform further policy development in this space.”
According to the SEC, the referenced approvals-in-principle are a precursor to the grant of full registration by the commission and are meant to ensure that appropriate protection and transparency are in place concerning each product or service.
The commission urged the public to exercise caution when dealing with digital platforms.
It advised, “The SEC uses this medium to reiterate that only approved digital exchanges and platforms are legally authorised 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.”
