The Securities and Exchange Commission (SEC) has granted provisional approval to two digital asset exchanges, Busha Digital Limited and Quidax Technologies Limited, as part of its Accelerated Regulatory Incubation Program (ARIP).
This initiative is part of the SEC’s broader effort to support innovation in the capital market while ensuring investor protection.
Busha Digital Limited operates a platform that facilitates the trading of crypto assets using fiat currency, allowing users in Nigeria and other developing economies to engage in various cryptocurrency activities such as buying, selling, storing, and making payments.
Quidax Technologies Limited also offers a platform for cryptocurrency trading, utilizing blockchain technology to enable transactions in a range of digital currencies.
In addition to these approvals, the SEC revealed that five other firms, including Trovotech Ltd, Wrapped CBDC Ltd, HousingExchange.NG Ltd, Dream City Capital, and Blockvault Custodian Ltd, have been admitted to test their business models and technologies under the Regulatory Incubation Program (RI).
This programme allows companies to innovate and test their digital products and services in a controlled environment under SEC supervision.
The SEC revealed that these provisional approvals are a preliminary step towards full registration, ensuring that robust consumer protections and transparency measures are in place.
The Commission also noted that more companies are being evaluated for participation in the ARIP and RI Program, with further approvals to be granted as requirements are met.
The SEC warned the public to only engage with digital exchanges and platforms that have received official approval, as unauthorized operators are not permitted to conduct crypto trading in Nigeria.
