Full List: 5 Cryptocurrency Companies Get SEC Approval to Operate in Nigeria
SEC Approves 5 Cryptocurrency Firms to Operate Legally in Nigeria.
The Securities and Exchange Commission (SEC) is taking significant steps toward legalizing cryptocurrency transactions in Nigeria. As part of these efforts, the SEC has granted approval in principle to select cryptocurrency exchange companies, marking a pivotal move in regulating digital assets within the country.
Nigeria, known for its high rate of cryptocurrency adoption, has seen transactions surpassing $56 billion. This new regulatory framework is expected to further bolster the crypto market by providing a legal and secure environment for digital asset trading.
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SEC’s Approval of Cryptocurrency Companies
In a recent announcement, the SEC released a list of cryptocurrency companies that have been authorized to operate in Nigeria. The approval, which comes under the Accelerated Regulatory Incubation Program (ARIP), includes two digital asset exchanges—Busha Digital Limited and Quidax Technologies Limited.
In addition to these approvals, five other firms have been admitted into the regulatory incubation program to test their models and technologies. This move is part of the SEC’s broader strategy to ensure that only approved digital exchanges and platforms are legally authorized to conduct cryptocurrency trading in Nigeria.
Here is what to know about the firms:
Busha Digital Limited: Operates a digital exchange for buying, selling, and trading crypto assets with fiat currency, accessible via mobile and web apps in Nigeria and other developing economies.
Quidax Technologies Limited: A cryptocurrency trading platform leveraging blockchain technology, allowing users to trade, store, and transact in various cryptocurrencies via web- and mobile-enabled services.
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Trovotech Ltd: Developed a blockchain-based platform for creating digital tokens, facilitating the trading of tokenized illiquid real-world assets like housing, agriculture, and infrastructure.
Wrapped CBDC Ltd: Plans to introduce a Nigerian stablecoin (cNGN or cN), pegged at cN1, for local and cross-border crypto transactions on recognized digital exchanges.
HXAfrica: Offers a platform for developers to raise capital through property tokenization and liquidate investments via an integrated exchange, with real estate tokens starting at N50,000.
Dream City Capital: Provides a digital platform for investors to acquire equity ownership in vetted residential and commercial real estate projects through a Special Purpose Company (SPC) framework.
Blockvault Custodian Ltd: Offers digital asset custodial services, focusing on secure storage, management, and compliance with AML/KYC checks and continuous transaction monitoring.
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SEC’s Regulatory Approach
The SEC emphasized that the listed firms are not the only entities that have applied for the ARIP and the Regulatory Incubation (RI) Program. Additional applications are being assessed, and further approvals will be granted as companies meet all SEC requirements.
The Commission reiterated that only those companies that have been approved under the ARIP or RI Program are legally authorized to conduct cryptocurrency trading in Nigeria. The public is strongly advised against engaging with illegal operators who have not received SEC’s approval.
The SEC’s proactive approach in regulating crypto trading in Nigeria is poised to foster a safer and more transparent digital asset market in Nigeria.
