Nigerian SEC Approves Digital Asset Exchanges
The Securities and Exchange Commission (SEC) of Nigeria has granted provisional approval to two digital asset exchanges, Busha Digital Limited and Quidax Technologies Limited. This approval enables the firms to operate under the Accelerated Regulatory Incubation Programme (ARIP), as highlighted in a report by local news outlet The Punch.
Details of the ARIP Cohort
The ARIP cohort comprises not only the two approved exchanges but also features four digital asset offering platforms and one digital asset custodian. This initiative aims to streamline the integration of firms that began operations prior to the establishment of regulations for Virtual Asset Service Providers in May 2022.
Busha Digital Limited: Features and Services
Busha Digital Limited stands out as a key player in the cryptocurrency market, enabling users to buy and sell cryptocurrencies using fiat currency. Through its user-friendly mobile and web applications, Busha facilitates a comprehensive range of cryptocurrency-related activities, including buying, selling, storing, sending, receiving, trading, investing, and making payments.
Quidax Technologies Limited: Platform Overview
Similarly, Quidax Technologies Limited operates a cryptocurrency trading platform that utilizes blockchain technology for its services. The platform specializes in the listing and trading of existing crypto tokens, managing operations via a proprietary blockchain developed by the company itself.
Expansion of the SEC’s Regulatory Incubation Program
In addition to Busha and Quidax, the SEC has also admitted five other firms into its Regulatory Incubation (RI) Program. These companies include Trovotech Ltd, Wrapped CBDC Ltd, HousingExchange.NG Ltd, Dream City Capital, and Blockvault Custodian Ltd. This program is designed to assess the business models of digital asset firms and test innovative products and services in a controlled market, all under the supervision of the SEC.
Understanding the Significance of Approvals
The SEC emphasized that these approvals-in-principle are crucial preliminary steps toward achieving full registration for the involved entities. The ARIP and RI programs currently represent the only pathways for companies to launch their digital products and services within the Nigerian capital market.
Concerns Over Binance’s Legal Issues
In a related context, concerns have arisen regarding the ongoing legal challenges faced by cryptocurrency exchange Binance and their potential impact on Nigeria’s blockchain ecosystem. The Blockchain Industry Coordinating Committee of Nigeria (BICCoN) voiced these worries, calling for a constructive resolution to the disputes to protect the country’s international reputation.
Recent Developments in the Binance Case
The situation escalated when U.S. lawmakers, including French Hill and Chrissy Houlahan, visited the Kuje Prison in Nigeria, where Binance executive Tigran Gambaryan is detained. Hill criticized Gambaryan’s treatment in custody, highlighting health concerns and the conditions of the prison. Despite a recent court ruling dismissing tax evasion charges against Gambaryan, he still faces separate money laundering allegations.
Allegations Against Nigerian Officials
In the midst of this turmoil, Binance CEO Richard Teng has accused a Nigerian government official of pressuring representatives to accept a covert agreement to address Nigeria’s claims against the exchange. This adds another layer of complexity to the ongoing legal battles and the overall uncertainty in the Nigerian cryptocurrency landscape.