Nigeria’s Securities and Exchange Commission (SEC) has made a key decision in the country’s cryptocurrency sector.
For the first time, the SEC has issued a provisional license to Quidax, an African-founded cryptocurrency exchange. This license officially recognizes Quidax as a registered crypto exchange in Nigeria.
This development is an important step for Nigeria’s cryptocurrency industry, which has been expanding rapidly. With this license, Quidax can operate under SEC regulations, giving it more authority in the market
See Also: Binance Exchange Accuses The Nigerian Government of Demanding $150 Million Bribe In Crypto
The Approval Of Quidax
Quidax shared this news with Cointelegraph, highlighting how crucial this approval is for them. They described the SEC’s approval as a much-needed boost for the Nigerian crypto community, encouraging further growth.
Buchi Okoro, the CEO and Co-founder of Quidax, expressed his appreciation for the SEC’s efforts in regulating the industry. He particularly acknowledged the leadership of Dr. Emomotimi Agama, who played a key role in this progress.
This approval allows Quidax to collaborate more with banks and financial institutions, although Central Bank approval is still required. The SEC’s license follows new rules introduced on June 21, which now include regulations for digital assets.
These updated rules cover areas like digital asset issuance, how they can be offered, and how exchanges and custody should be managed. A key part of these changes is the Accelerated Regulatory Incubation Programme (ARIP).
ARIP is designed to help virtual asset service providers (VASPs) meet the new regulatory standards. There were concerns that these strict requirements might reduce the number of local crypto exchanges.
The SEC now demands that crypto exchanges have at least 500 million naira in capital, around $556,620. Exchanges also need an insurance bond that covers at least 25% of this minimum capital.
Nigeria, the largest economy in Africa, has been leading in cryptocurrency adoption. A survey conducted across 15 countries found that Nigeria has the highest awareness of cryptocurrencies.
Chainalysis’ 2023 report ranked Nigeria second among 154 countries for crypto adoption, highlighting its key role in the global market. However, despite high adoption, foreign investment in Nigeria’s crypto sector has not been as high as expected.
With the new regulations and Quidax’s license, it is hoped that both local and international interest will grow in Nigeria’s crypto market.
You can also join our Telegram community where you can learn all you want to know about the cryptocurrency space, defi, web3, and airdrop opportunities and also have access to live AMA sessions from time to time, then click the button below to join Dipprofit Telegram Community For Free Now