The Securities and Exchange Commission (SEC) has granted Approval-in-Principle to two crypto exchanges Quidax and Busha, making them legally recognised crypto trading platforms in the country.
SEC made this known in a statement on Thursday.
It said the two exchanges were approved under its Accelerated Regulatory Incubation Program (ARIP) programme.
SEC introduced ARIP to strategically on-board firms that had commenced operations prior to the release of the Rules on Virtual Asset Service Providers in May 2022, in response to several calls by stakeholders on the need to regulate crypto trading in the country.
The Commission said it also admitted four companies to test their models and technology under its Regulatory Incubation (RI) Programme.
The four firms are digital assets offering platforms, Trovotech Ltd, Wrapped CBDC Ltd, Dream City Capital, and HousingExhange.NG Ltd.
According to SEC, apart from the listed firms, other applications were received, are being assessed and would be granted Approval-in-Principle on a case-by-case basis as they meet all SEC requirements.
While noting that the referenced Approvals-in-Principle is a precursor to the grant of full registration by SEC, the Commission emphasised the legal status of the companies as crypto trading platforms in Nigeria.
“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,” the Commission stated.
