Nigerians to Trade Crypto Officially as SEC Grants Approval to Operators
- The Securities and Exchange Commission (SEC) has approved, in principle, crypto exchange companies
- The move signals the Nigerian government’s approval for crypto trading in the country
- The SEC said about four exchanges were approved under its Accelerated Regulatory Incubation Programm (ARIP)
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
In a landmark move, the Nigerian government, via the Securities and Exchange Commission (SEC), has officially granted operational approvals to many crypto operators, showing acceptance of the digital currency.
On Thursday, August 29, 2024, the SEC announced that it had approved two Digital Asset Exchanges' approval-in-principle to begin operating under its Accelerated Regulatory Incubation Programme (ARIP) and admitted four other companies to test their models and technology under its regulatory incubation scheme.
Source: Getty Images
Names of firms given approvals
According to reports, the firms include Busha Digital Limited, Quidax Technologies Limited, Trovotech Ltd, Wrapped CBDC Ltd, Housing Exchange NG Ltd, Dream City Capital, and Blockvault Custodian Ltd.
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The development comes several months after the Nigerian government blocked Binance, the world’s largest crypto exchange platform, from the country.
FG accuses crypto firm of fraud
The government accused Binance of currency manipulation and unauthorised trading, which led to the firm's disabling of its naira peer-to-peer (P2P) feature.
The Central Bank of Nigeria (CBN) disclosed that billions of dollars passed through Binance in one year, labelling the platform a conduit for money laundering and currency manipulation.
The Nigerian government is in a running battle with Binance, with its executives facing charges in the country.
The SEC's approval for Nigerians to trade crypto officially will be seen as a considerable achievement, as the country ranks high among crypto-trading nations.
Crypto traders expressed delight in the news, saying that black market trading will end in the country.
Samuel Abu, a crypto trader, told Legit.ng the move is in the right direction.
"When you see the direction, you cannot but allow Nigerians to trade in crypto. All the government needed to do was put checks in place, which they have now done to prevent abuse," he said.
After Binance, another crypto firm exits Nigeria
Earlier, Legit.ng reported that OKX, a cryptocurrency exchange, declared its departure from Nigeria.
The decision was attributed to stringent local regulations following a recent crackdown on digital asset services.
The announcement also followed strict enforcement of local laws affecting the operational viability of numerous cryptocurrency firms.
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Source: Legit.ng
