Following the exit of two giant crypto exchanges from Nigeria, the Securities and Exchange Commission (SEC) has granted provisional licenses to two crypto exchanges to operate within the borders of the country.

The approvals, which were granted to Quidax and Busha under the SEC’s Accelerated Regulatory Incubation Program (ARIP), allow these exchanges to operate legally as Digital Asset Exchanges in Nigeria. This ARIP was designed to onboard firms that had been operating before the introduction of Virtual Asset Service Provider rules in May 2022.

Buchi Okoro, Co-founder and CEO of Quidax, hailed the decision as “a big win for Nigeria’s embrace of crypto,” emphasizing the importance of investor protection and market confidence.

“We commend the SEC under the leadership of Dr. Emomotimi Agama, for taking the bold step to bring order, confidence and investor protection to our industry. This is a big win for Nigeria’s embrace of crypto, and we are glad to be a part of this historical moment,” Okoro said.

In addition to the exchange approvals, the SEC has admitted other digital asset offering platforms and one digital asset custodian into its Regulatory Incubation Program. These include Trovotech, Wrapped CBDC, HousingExhange, Dream City Capital, and Blockvault Custodian.

This regulatory framework aims to balance innovation with necessary safeguards, creating a secure environment for both investors and industry participants. It comes as a welcome development following the Central Bank of Nigeria’s 2021 ban on financial institutions facilitating crypto transactions, which was lifted in 2023.

Read also: Bolt suspends inter-country ride requests for users in Nigeria and South Africa

The SEC emphasized that only approved digital exchanges and platforms are now legally authorized to conduct crypto trading in Nigeria. This move is expected to improve partnerships between crypto businesses and traditional financial institutions, and also lead to an increase in investor confidence.

The SEC advises the public to verify the legal status of any entity offering crypto-related services through its information portals before engaging in transactions.

“Intending investors are also reminded to always confirm from the various SEC information portals whether entities purporting to provide investment services are legally empowered to do so” The SEC said.