In a move to modernize and adapt to the changing financial market, Nigeria’s Securities and Exchange Commission (SEC) recently granted two companies, Busha Digital Ltd. and Quidax Technologies Ltd., “conditional approval” to launch their businesses under the Accelerated Regulatory Incubation Program (ARIP).
The Director General of the SEC, Dr. Emomotimi Agama, noted that the move is part of the desire to engage the youth, in line with the vision of President Bola Tinubu, and to foster their participation, as well as that of other Nigerians, in the market. This is part of a vision of openness to new global trends, particularly in digital assets.
The SEC, as a forward-looking institution, is keen to ensure that Nigeria remains competitive on the international stage and can meet the challenges posed by the emergence of new asset classes. Cryptocurrencies are increasingly popular among Nigerian youths, and it is essential to integrate them into the financial market, while ensuring their security and investor protection.
The regulation of digital asset exchanges is part of the SEC’s Virtual Asset Service Provider Regulation Program, which aims to better understand the functioning of cryptocurrency exchanges and virtual financial service providers. This approach allows the SEC to better understand the risks associated with these institutions and their products, with the aim of protecting the national economy and investors.
Under its Regulatory Incubation Program, the SEC grants conditional approval to companies wishing to operate in the digital asset sector, after verifying their compliance with the criteria of reliability and compliance with the regulations in force. This approach allows the SEC to monitor and study the activities of these companies in a comprehensive manner, in order to identify potential risks and put in place the necessary measures to ensure a secure and transparent financial environment.
In conclusion, the Nigerian SEC is taking a proactive and pragmatic approach to regulating digital assets, with the aim of fostering innovation while ensuring investor protection and financial market stability. This regulatory incubation programme is a testament to the institution’s commitment to adapting to new economic realities and fostering the development of a dynamic and secure financial environment.