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The Nigerian Securities and Exchange Commission (SEC) has granted Quidax, a cryptocurrency exchange based in Africa, its first provisional operating license. This move marks a significant step toward formal recognition and regulatory oversight of the digital asset sector in Nigeria.
The SEC’s license allows Quidax to function as a registered {Crypto} exchange within the country. According to a press release from Quidax, this regulatory approval is expected to invigorate the Nigerian cryptocurrency community, fostering further innovation and growth in the sector.
Buchi Okoro, co-founder and CEO of Quidax, expressed appreciation for the SEC’s decisive action, particularly under the leadership of Emomotimi Agama. Okoro highlighted the importance of this regulatory endorsement in establishing order, building confidence, and enhancing investor protection within Nigeria’s crypto industry.
With the SEC’s approval, Quidax is now positioned to engage with banks and other financial institutions, contingent upon receiving authorization from the Central Bank of Nigeria. This regulatory development follows a significant update to the SEC’s rules on June 21, which addressed digital asset issuance, platform offerings, exchanges, and custody arrangements. A key element of the updated framework is the Accelerated Regulatory Incubation Programme, aimed at helping virtual asset service providers comply with new regulatory standards.
While these regulatory advancements are promising, initial concerns were raised about the reduction in the number of local crypto exchanges due to stringent licensing requirements. The Nigerian SEC mandates a minimum upfront capital requirement and a Fidelity Insurance Bond covering a portion of the required capital for both digital asset exchanges and platforms.
Nigeria, recognized as Africa’s largest economy, has consistently demonstrated high levels of cryptocurrency adoption. A recent survey highlighted Nigeria as having one of the world’s most cryptocurrency-aware populations. Despite this high adoption rate, the anticipated surge in foreign crypto involvement has not fully materialized. The new regulatory framework and Quidax’s licensing may provide a more stable environment that could attract both local and international participants to Nigeria’s digital asset market.
