The Securities and Exchange Commission (SEC) announced on Wednesday that it has granted “approval-in-principle” to two crypto exchanges to provide Nigerian youths with opportunities for capital market participation.
Dr. Emomotimi Agama, Director General of SEC, stated that this initiative aligns with President Bola Tinubu’s goal to engage Nigerian youths in financial markets. The approved exchanges are Busha Digital Ltd. and Quidax Technologies Ltd., which will operate under the Accelerated Regulatory Incubation Program (ARIP).
Agama emphasized that the SEC is taking a cautious approach to ensure that these institutions do not pose risks to the national economy or investors. He highlighted that as global trends evolve, it is crucial for Nigeria to stay competitive by supporting young people’s involvement in cryptocurrencies, while also ensuring investor protection and market development.
The SEC’s program on digital asset exchanges stems from its Virtual Assets Service Providers Regulation, aimed at understanding and managing the risks associated with crypto exchanges. Although the exchanges have not been fully licensed yet, they have received approval to begin operations in a controlled environment. This regulatory incubation allows the SEC to assess their operations and ensure compliance with necessary guidelines, thus safeguarding Nigerian investors and the economy.
