In a groundbreaking move that could reshape the African crypto landscape, the Nigerian Securities and Exchange Commission (SEC) has granted Quidax, a homegrown crypto exchange, the first provisional operating license. This landmark decision marks a pivotal moment for the country’s burgeoning digital asset industry, signaling a shift towards formal recognition and robust regulatory oversight.
The SEC’s approval empowers Quidax to operate as a registered crypto exchange within Nigeria, a significant step towards legitimizing the crypto market. The exchange has hailed the license as a “shot of adrenaline” for the Nigerian crypto community, anticipating increased innovation and expansion within the sector.
Buchi Okoro, Co-founder, and CEO of Quidax lauded the SEC, particularly under the leadership of Dr. Emomotimi Agama, for their proactive approach to establishing a regulated and investor-protected crypto ecosystem. This regulatory green light positions Quidax to collaborate with traditional financial institutions, subject to the Central Bank of Nigeria’s approval, opening doors for broader adoption and integration.
The SEC’s licensing decision follows a comprehensive amendment to its rules in June, outlining regulations for digital asset issuance, platforms, exchanges, and custody. Notably, the introduction of the Accelerated Regulatory Incubation Programme (ARIP) aims to assist virtual asset service providers (VASPs) in complying with the new regulatory framework.
While the regulatory advancements are welcomed, initial concerns about stringent licensing requirements potentially reducing the number of local crypto exchanges have been addressed. The SEC mandates a minimum upfront capital of 500 million naira and a Fidelity Insurance Bond, setting a high bar for market entry.
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Nigeria’s crypto enthusiasm is undeniable. The country boasts the world’s most cryptocurrency-aware population, according to a recent survey, and ranks second in crypto adoption globally, as per Chainalysis. However, the anticipated influx of foreign crypto investment has been relatively subdued. The new regulatory landscape and Quidax’s licensing could be catalysts for attracting foreign capital by providing a more stable and secure investment climate.
As Nigeria continues to solidify its position as a crypto hub, the industry is poised for significant growth. With Quidax leading the way under a regulatory umbrella, the future of crypto in Africa appears increasingly promising.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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