In a landmark development, the Nigeria SEC has approved the first provisional operating license for local crypto exchange Quidax.
The regulator’s move marks a milestone in Nigeria’s crypto regulations. Moreover, it could open doors for more crypto exchanges, both locally and internationally, to venture into the country.
Local Crypto Exchange Bags Nigerian SEC’s First Provisional Operating License
According to a Cointelegraph report, the African-founded crypto exchange Quidax bagged Nigeria’s SEC crypto operating license. This landmark achievement has positioned Quidax as the first crypto exchange to receive a provisional operating license in Nigeria.
Moreover, the regulator’s approval is a milestone in the country’s crypto regulatory advancements. It indicates Nigeria’s readiness to embrace digital assets and legitimize its crypto market.
According to the report, the license offers Quidax the right to operate as a registered crypto exchange in Nigeria. It will also allow the crypto exchange to partner with other financial institutions, including banks, pending approval from the Central Bank of Nigeria.
Quidax CEO and co-founder Buchi Okoro expressed his excitement over the license, which he described as a remarkable feat for the exchange. He also reiterated Quidax’s commitment to its core values, which include customer satisfaction and funds’ safety.
Further, the executive appreciated the SEC’s approval of the crypto operational license. He noted the agency’s positive efforts to establish progressive regulatory measures for the crypto industry.
Also, Okoro mentioned that the SEC, under its new Chair, Dr. Emomotimi Agama focuses on ensuring orderliness, investors’ safety, and confidence in the industry.
Moreover, the executive said the license represents a big win for Nigeria’s crypto industry and shows the country’s readiness to adopt positive changes within the financial digital space.
Digital Asset Regulations and Trends in Nigeria
On June 21, the Nigeria SEC released a comprehensive amendment to its regulations on digital asset issuance. The rules also indicated some requirements for offering exchanges, platforms, and custody as part of the Accelerated Regulatory Incubation Program (ARIP).
Notable, ARIP aims to assist virtual asset service providers (VASPs) in complying with new regulatory standards.
However, concerns remain that strict approaches and requirements could limit the growth of local crypto exchanges or the entrance of new ones.
The SEC demands a compulsory minimum upfront capital deposit of 500 million naira ($556,620) from Digital Asset Exchanges and Digital Assets Offering Platforms (DAOs). Also, the
Nigeria’s stringent crypto regulations have forced some crypto companies to exit. The OKX crypto exchange disclosed its operational closure in Nigeria due to changes in local regulatory rules.
The OKX exit tolls the pattern of other prominent crypto exchanges that previously left the country, including Binance and KuCoin.
Despite these, as Africa’s largest economy, Nigeria remains among the countries with the highest crypto adoption globally. In a survey comprising over 15 countries, Nigeria emerged with the most crypto-aware population in the world.
Similarly, Nigeria ranked second in crypto adoption among 154 countries, according to Chainalysis’ “The 2023 Geography of Cryptocurrency.”
Disclaimer: The opinions expressed in this article do not constitute financial advice. We encourage readers to conduct their own research and determine their own risk tolerance before making any financial decisions. Cryptocurrency is a highly volatile, high-risk asset class.
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