The Securities and Exchange Commission (SEC), has officially granted operational approvals to several crypto operators, indicating an acceptance of the digital currency.
On Thursday, the SEC announced that it had granted approval-in-principle to two Digital Asset Exchanges to begin operations under its Accelerated Regulatory Incubation Program (ARIP). Five firms were also admitted to test their models and technology under its Regulatory Incubation Program.
The approved firms include Busha Digital Limited, Quidax Technologies Limited, Trovotech Ltd, Wrapped CBDC Ltd, HousingExhange.NG Ltd, Dream City Capital, and Blockvault Custodian Ltd.
The ARIP was introduced by the SEC to onboard firms that had already begun operations before the release of the Rules on Virtual Asset Service Providers in May 2022. The RI Program was designed to evaluate the business models of digital asset firms and allow them to test their products, services, and technology in a real-world market environment under the regulator’s close supervision.
This latest development follows a recent announcement by Zacch Adedeji, chairman of the Federal Inland Revenue Service (FIRS) that the government is drafting an executive bill to overhaul revenue administration, including regulating the cryptocurrency industry.
“We need a law that regulates that area of our economy. This is why we are having this engagement with the legislators. We will regulate it in a way that is not injurious to the economic development of Nigeria,” he stated.
SEC’s approvals come despite a series of crackdowns on the crypto sector earlier in 2024, following the lifting of a ban on official crypto transactions in December 2023. The government had targeted crypto operators, blaming them for the naira’s volatility, tax evasion, and terrorism financing.
The SEC emphasised that these approvals are a precursor to granting full registrations and aim to ensure appropriate protection and transparency. With these approvals, Busha Digital Limited and Quidax Technologies Limited have become the country’s first ‘licensed’ crypto operators.
“I am pleased to announce that Busha has been granted one of the first provisional licenses from the Nigerian Securities and Exchange Commission to operate as a regulated Virtual Asset Service Provider,” tweeted Michael Adeyeri, Busha’s chief executive officer.
He noted that the firm had been engaged with the process for over five years, ensuring their systems prioritised security and compliance.