On August 29, 2024, Nigeria’s Securities and Exchange Commission (SEC) officially granted preliminary approvals to seven crypto-based service operators.
Preliminary Approvals from SEC
According to a statement by SEC, the preliminary approvals were granted to Busha Digital Limited, Quidax Technologies Limited, Trovotech Ltd, Wrapped CBDC Ltd, HousingExhange.NG Ltd, Dream City Capital, and Blockvault Custodian Ltd. These approvals are initial steps toward complete registration aimed at ensuring adequate protection and transparency for each product or service offered.
Approved Companies
The approved companies include two Digital Asset Exchanges, four Digital Asset Offering Platforms, and one Digital Asset Custodian. These companies will operate under the Accelerated Regulatory Incubation Program (ARIP) launched in July 2024 to integrate crypto exchanges that started operations before the SEC's May 2022 rules for virtual asset service providers.
Significance for Nigeria's Crypto Market
The preliminary approvals hold significant importance for Nigeria’s crypto market as they represent a formal acceptance of cryptocurrencies within the country's financial landscape and pave the way for regulated crypto activities. These approvals follow Finance Minister Wale Edun’s recent call to address cryptocurrency regulation complexities and strengthen oversight to ensure market integrity.
These approvals mark a crucial step forward for the Nigerian cryptocurrency market, providing platforms and services that operate in line with global standards.
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