Breaking News: Nigeria’s Security and Exchange Commission (SEC) said it has authorized two cryptocurrency exchange platforms to operate in Nigeria, 9AM News Nigeria can report.
The two legally exchange recognized platforms by SEC are Quidox and Busha, making them the only authorized platforms for trading cryptocurrencies in Nigeria.
This approval was given on the understanding that both platforms must remain subjected to governmental regulations.
This is a shift from Nigeria’s previous policy of complete non-acceptance of cryptocurrency operations in the country.
The two platforms were approved under a new program launched by SEC called the Accelerated Regulatory Incubation Program (ARIP).
The Commission is also working to license four new digital assets companies. These companies are DreamCity Capital, HousingExchange.ng Ltd, Trovotech Ltd and Wrapped CBDC.
In an announcement made on 29 August 2024 the commission said it had received numerous applications from digital assets and cryptocurrency trading platforms. It vowed to examine each application with utmost thoroughness and would grant approval only if they meet all of the requirements laid out by SEC.
SEC’s statement made available to 9AM News Nigeria read ““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.
“In this regard, the ARIP and RI remain the only avenues for well-intentioned entities to legitimately introduce their digital products and services to the Nigerian Capital market. “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.
“Intending investors are also reminded to always confirm from the various SEC information portals whether entities purporting to provide investment services are legally empowered to so do,”.
Further information
Ogasabi recounts that the Nigerian authorities initially took a hard stance against cryptocurrencies. Nonetheless many Nigerians continued to carryout cryptocurrency transactions through various platforms.
Numerous reports listed Nigeria among the hubs of cryptocurrency operations in the world. This pressured the Nigerian authorities to soften their stance on cryptocurrencies.
The previous nontolerant stance against cryptocurrencies paved the way for unscrupulous cryptocurrency dealers to defraud people through different forms of manipulations.
The nefarious activities of these con men were harming the image and legitimacy of honest actors in the cryptocurrency space. Hence, the need to open the market for operations by licensed and legitimate entities.
