Full List: SEC Releases Names of 5 Cryptocurrency Companies Approved to Operate in Nigeria
- Securities and Exchange Commission (SEC) is working to legalise cryptocurrency transactions in Nigeria
- To achieve its objective, the commission, as approved in principle, crypto exchange companies to operate
- Nigeria has one of the highest numbers of crypto adopters globally, with transactions reaching over $56 billion
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Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Securities and Exchange Commission (SEC) has released the list of cryptocurrency companies authorised to operate in Nigeria.
The approval comes amid ongoing efforts to regulate digital assets.
Source: Getty Images
According to a statement from the SEC, it has granted approval in principle to two digital asset exchanges, Busha Digital Limited and Quidax Technologies Limited, to begin operations under its Accelerated Regulatory Incubation Program (ARIP).
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Five firms were also admitted to testing their models and technology under its regulatory incubation program.
Part of the statement reads:
"It is noteworthy that the above firms are not the only entities that have applied to ARIP and the RI Program.
"Other applications received are being assessed and would be granted Approval-in-Principle on a case-by-case basis as they meet all SEC requirements.
"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."
Here is what to know about the firms:
Busha Digital Limited
Operates a digital exchange for buying, selling, and trading crypto assets with fiat currency, accessible via mobile and web apps in Nigeria and other developing economies.
Quidax Technologies Limited
It runs a cryptocurrency trading platform leveraging blockchain technology, allowing users to trade, store, and transact in various cryptocurrencies via web- and mobile-enabled services.
Trovotech Ltd
Developed a blockchain-based platform for creating digital tokens, facilitating the trading of tokenised illiquid real-world assets like housing, agriculture, and infrastructure.
Wrapped CBDC Ltd:
Plans to introduce a Nigerian stablecoin (cNGN or cN), pegged at cN1, for local and cross-border crypto transactions on recognised digital exchanges.
HXAfrica
It offers a platform for developers to raise capital through property tokenisation and liquidate investments via an integrated exchange, with real estate tokens starting at N50,000.
Dream City Capital
Provides a digital platform for investors to acquire equity ownership in vetted residential and commercial real estate projects through a Special Purpose Company (SPC) framework.
Blockvault Custodian Ltd
Offers digital asset custodial services, focusing on secure storage, management, and compliance with AML/KYC checks and continuous transaction monitoring.
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.
Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng
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Source: Legit.ng
