Nigeria’s Securities and Exchange Commission (SEC) has granted its first provisional operating license to Quidax, a local cryptocurrency exchange, signaling a landmark move in the country’s regulatory landscape. This decision marks the formal recognition and oversight of Nigeria’s burgeoning digital asset industry.
Quidax, in a statement, hailed the SEC’s approval as a significant boost for the Nigerian crypto sector, fostering innovation and growth. Buchi Okoro, CEO of Quidax, praised the SEC’s leadership, specifically under Emomotimi Agama, for bringing clarity, investor protection, and stability to the market.
With the license in hand, Quidax can now engage with banks and financial institutions, pending further approval from the Central Bank of Nigeria. The SEC’s decision comes after a comprehensive rule amendment on June 21, which covered digital asset issuance, exchanges, and custody services. A key feature of these changes is the Accelerated Regulatory Incubation Programme, designed to align virtual asset service providers with new regulations.
However, strict licensing requirements, including a minimum capital of 500 million naira ($556,620) and a mandatory Fidelity Insurance Bond, have raised concerns about potential challenges for smaller exchanges.
Nigeria, Africa’s largest economy, remains a leader in global cryptocurrency adoption. Despite a high rate of crypto awareness and use, foreign investment has lagged behind expectations. The SEC’s licensing move could shift this trend, creating a safer environment for local and international investors alike.
By establishing clear regulatory frameworks, Nigeria aims to strengthen its position in the global crypto landscape and encourage more significant foreign and local participation in its digital asset market.