Nigeria’s SEC Grants Provisional Approval to Quidax and Busha

• SEC stated that additional firms will be granted Approval-in-Principle as they meet the necessary regulatory requirements
• The SEC has also admitted four other companies into its Regulatory Incubation (RI) Program.

The Nigerian Securities and Exchange Commission (SEC) has given an Approval-in-Principle to two cryptocurrency exchanges, Quidax and Busha. This grants them the status of officially recognized crypto trading platforms in Nigeria. The approval was granted under the SEC’s Accelerated Regulatory Incubation Program (ARIP), which aims to facilitate the growth of the digital assets market in a regulated environment.

Alongside these approvals, the SEC has also admitted four other companies into its Regulatory Incubation (RI) Program. These companies—Trovotech Ltd, Wrapped CBDC Ltd, Dream City Capital, and HousingExchange.NG Ltd—will now be able to test their business models and technologies under the supervision of the SEC.

This step is part of a broader effort by the SEC to ensure that digital asset offerings are conducted in a safe and secure manner, providing protection for investors and maintaining market integrity.

The SEC clarified that these approvals are just the start, with other applications currently under review. Each application will be assessed on its own merits, and additional firms will be granted Approval-in-Principle as they meet the necessary regulatory requirements.

“The SEC uses this medium to reiterate that only approved digital exchanges and platforms are legally authorized to carry out the business of crypto trading in any form in Nigeria,” the Commission stated.

The SEC further advised the public to avoid engaging with unauthorized operators. They stressed the importance of verifying the legitimacy of any entity claiming to offer investment services through official SEC channels.

“The public is strongly advised to refrain from dealing with illegal operators who have not applied to and received the SEC’s approval under the ARIP or the RI Program,” the Commission warned.

Busha’s CEO welcomed the SEC’s provisional approval, highlighting the company’s commitment to security and transparency in the digital assets space. “Our team has been unwavering in our commitment to fostering a safe, secure, and transparent environment for all users of digital assets in Nigeria. This provisional license from the SEC is a testament to the rigorous standards we have upheld since day one,” he said.

Nigeria has had a tumultuous relationship with crypto so far. In February 2021, CBN barred financial institutions from handling crypto-asset transactions. However, a circular issued on December 22, 2023, permitted certain virtual asset service provider (VASP) activities related to cryptocurrencies and crypto assets, subject to new guidelines.

In May 2024, Nigerian fintech platforms warned users against using their accounts for crypto transactions, threatening heavy sanctions amid the country’s ongoing efforts to regulate cryptocurrency.

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