Nigeria has given the green light to two crypto exchanges, while also warning against doing business with 'illegal operators'.

Nigerian SEC’s Accelerated Onboarding Initiative

On August 29, the Nigerian Securities and Exchange Commission (SEC) revealed that it has granted "approval in principle" to two digital asset exchanges, Busha Digital Limited and Quidax Technologies Limited, allowing them to commence operations. These companies are the first to benefit from the SEC Nigeria’s Accelerated Regulatory Incubation Program (ARIP).

The SEC also announced that five companies have been admitted to participate in its Regulatory Incubation (RI) program, where they can test their business models and technology. Among these companies, four – Trovotech Ltd, Wrapped CBDC Ltd, Housingexhange.NG Ltd, and Dream City Capital – are designated as digital asset offering platforms. The remaining company, Blockvault Custodian Ltd, has been recognized as a digital asset custodian.

As reported earlier by Bitcoin.com News, the Nigerian SEC introduced the ARIP to streamline the onboarding process for entities that have applied for licenses. Entities that meet the initial requirements are granted provisional approval to either start or continue their operations while awaiting the full implementation of digital asset regulations.

Warning to the Public on Unauthorized Firms

In a recent statement, the SEC highlighted that participants in the ARIP and RI programs are primarily utilizing distributed ledger technology.

“The current group of ARIP and RI participants is distinguished by their use of distributed ledger technology [DLT] for creating and trading crypto assets. The findings from these tests will help shape future policies in this sector. Tests will be conducted on a small scale and over a short period, and the SEC will maintain collaboration with participating firms to establish testing parameters and ensure robust consumer protections,” the SEC Nigeria noted.

The Nigerian SEC also mentioned that it is reviewing additional applications for digital asset exchanges and will extend similar approvals to those that comply with all SEC guidelines.

Furthermore, the regulator urged Nigerian citizens to be cautious and avoid engaging with entities that have not been authorized or have not sought approval from the SEC. Investors are encouraged to verify the legitimacy of entities claiming to offer investment services on the SEC’s official platforms.