Nigeria issues its initial crypto licenses, indicating an unusual regulatory strategy. The implementation of new regulations may serve to attract foreign investments to Nigeria’s cryptocurrency market.
In 2024, there have been substantial modifications to the global cryptocurrency landscape. The year commenced with the implementation of new regulations by countries such as Turkey and Russia to regulate the increasing influence of digital assets.
Nigeria has now taken a significant step by issuing its initial licenses to local crypto exchanges. This has indicated a change in its approach to digital currencies.
In an initiative known as the Accelerated Regulatory Incubation Program (ARIP), the Nigerian Securities and Exchange Commission (SEC) granted “approval-in-principle” licenses to Busha Digital Limited and Quidax Technologies Limited on August 29th.
Speaking on the matter, Buchi Okoro, Co-founder and CEO of Quidax, stated in a statement, “We commend the SEC, under the stewardship of Dr. Emomotimi Agama, for taking the audacious step to restore order, confidence, and investor protection to our industry. This is a significant victory for Nigeria’s adoption of cryptocurrency, and we are delighted to have been a part of this historic occasion.”
Nevertheless, the Nigerian Securities and Exchange Commission’s press release on August 29th included the following:
“Under the SEC’s Regulatory Incubation [“RI”] Program, five firms have been permitted to evaluate their models and technology.”
Here, the five firms are as follows: Trovotech Ltd, HousingExchange.NG Ltd, Wrapped CBDC Ltd, Blockvault Custodian Ltd, and Dream City Capital.
It is important to note that the Nigerian Securities and Exchange Commission (SEC) has implemented two regulatory incubation programs to ensure the oversight and regulation of digital asset firms in the country.
The objective of these programs is to establish a foundation for the development of more robust regulations, which will guarantee the protection and transparency of digital asset services.
The ARIP was implemented in order to comply with the Central Bank of Nigeria’s recent modifications, with an emphasis on the integration of Virtual Assets Services Providers (VASPs) and the modification of regulations regarding the issuance, custody, and exchange of digital assets.
In the interim, the RI program evaluates the business models of digital asset firms in real-time market conditions, thereby assisting in the development of cohesive policies for the developing crypto industry in Nigeria.
Also Read: Qatar Introduces a Novel Digital Assets Framework
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