In a groundbreaking development, the Federal Government, via the Securities and Exchange Commission (SEC), has officially granted operational approvals to several cryptocurrency operators, signalling a significant step towards accepting digital currency in Nigeria.
This move comes in the wake of a series of stringent actions taken against the crypto industry in 2024, following the lifting of the official ban on crypto transactions in December 2023. The government had previously targeted crypto operators, holding them responsible for issues such as the naira’s instability, tax evasion, and the financing of terrorism.
On Thursday, August 29, the SEC announced that it had given approval in principle to two Digital Asset Exchanges under its Accelerated Regulatory Incubation Program (ARIP), allowing them to commence operations.
In addition, the SEC revealed that five companies—Busha Digital Limited, Quidax Technologies Limited, Trovotech Ltd, Wrapped CBDC Ltd, and HousingExchange.NG Ltd—along with Dream City Capital and Blockvault Custodian Ltd, were selected to test their business models and technologies under its Regulatory Incubation Program.
The ARIP was launched by the SEC to onboard firms already in operation before the release of the Rules on Virtual Asset Service Providers in May 2022. This program allows digital asset firms to test their products, services, and technology in a real-world market environment under close regulatory supervision.
This development follows remarks by Zacch Adedeji, chairman of the Federal Inland Revenue Service (FIRS), who recently disclosed that the government is drafting an executive bill aimed at regulating the cryptocurrency industry. “We need a law that regulates that area of our economy. This is why we are having this engagement with the legislators. We will regulate it in a way that is not injurious to the economic development of Nigeria,” Adedeji stated.
The SEC emphasized that these approvals are a precursor to granting full registrations and are designed to ensure transparency and consumer protection in the growing digital asset space.
Nigeria continues to be a major player in the global cryptocurrency market. According to blockchain platform Chainalysis, the country saw crypto transactions totaling $56.7 billion between July 2022 and June 2023, making it one of the largest peer-to-peer (P2P) crypto markets in the world.
