SEC grants Approval-In-Principle to Quidax and Busha

Nigeria's Securities and Exchange Commission (SEC) has made a significant move in the cryptocurrency space by granting an Approval-in-Principle to Quidax and Busha, recognizing them as legally recognized crypto trading platforms in the country. The decision marks a pivotal moment for the crypto industry in Nigeria, highlighting the SEC's commitment to adapting to the changing regulatory landscape and fostering innovation in the market. The Director General of the SEC, Dr. Emomotimi Agama, recently joined CNBC Africa to discuss the Regulatory Incubation Programme and the implications of granting approval to Quidax and Busha. Dr. Agama emphasized the SEC's focus on investor protection and market development while also addressing the need to support the growing fintech sector in Nigeria. The Regulatory Incubation Programme, developed under the Virtual Asset Service Providers Regulation (VAS), serves as a framework for understanding and regulating crypto exchanges and virtual financial asset service providers. Dr. Agama explained that the program allows the SEC to assess the risks associated with these institutions and their products without stifling innovation. By providing an Approval-in-Principle rather than outright licensing, the SEC is able to invite exchanges and individuals into a controlled experiment where they are understudied to ensure compliance with regulatory guidelines. This approach helps safeguard the interests of market participants, investors, and the Nigerian economy by establishing guardrails for the operation of crypto trading platforms. Looking ahead, Dr. Agama highlighted the SEC's efforts to navigate the evolving global regulatory landscape in the crypto industry. With the International Organization for Security Discrimination (IOSCO) training Nigerian staff on managing and regulating crypto assets, the SEC aims to position Nigeria as a proactive player in the space. In the next five to ten years, Dr. Agama envisions a transformed market under the SEC's purview, with increased participation from young Nigerians and a focus on inclusive regulation. The SEC is committed to protecting investors, fostering market development, and mitigating risks to the national economy, ensuring that the crypto industry contributes positively to Nigeria's financial ecosystem. The approval granted to Quidax and Busha signifies a step forward for the crypto industry in Nigeria, signaling the SEC's readiness to engage with new technologies and support innovation in the financial sector. As the regulatory landscape continues to evolve, the SEC's proactive approach to understanding and regulating crypto assets sets a positive precedent for the industry's growth and development in the country.