Nigeria SEC Grants First License to Local Crypto Exchange

Nigeria SEC Has Issued It’s First Operational License To Quidax

iexclusivenews – The Nigerian Securities and Exchange Commission (SEC) has taken a groundbreaking step by issuing it’s first provisional operating license to Quidax, an Africa-based cryptocurrency exchange.

This development marks the beginning of formal recognition and regulatory oversight for Nigeria’s burgeoning digital asset industry.

This online news outlet learnt that according to a press release shared with Cointelegraph, the SEC’s license allows Quidax to operate as a registered cryptocurrency exchange within Nigeria.

Quidax has hailed the SEC’s approval as a “shot of adrenaline” for the Nigerian crypto community, fostering further innovation and expansion.

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Regulatory Milestone for Nigeria SEC

Buchi Okoro, the co-founder and CEO of Quidax, expressed his gratitude towards the SEC, particularly under the new leadership of Emomotimi Agama.

He praised the commission for its decisive actions aimed at bringing order, confidence, and investor protection to the Nigerian crypto industry.

With this regulatory approval, Quidax can now collaborate with banks and other financial institutions, pending the Central Bank of Nigeria’s approval.

The SEC’s licensing follows a comprehensive amendment to its rules on June 21, which covered digital asset issuance, offering platforms, exchange, and custody.

A notable part of this regulatory overhaul is the introduction of the Accelerated Regulatory Incubation Programme, designed to help virtual asset service providers align with new regulatory requirements.

Despite these advancements, there were initial concerns that the stringent licensing requirements might significantly reduce the number of local crypto exchanges.

The Nigerian SEC mandates a minimum upfront capital requirement of 500 million naira ($556,620) and a current Fidelity Insurance Bond covering at least 25% of the stipulated minimum paid-up capital for both digital asset exchanges and digital asset offering platforms.

Nigeria SEC Impact on the Crypto Landscape

Nigeria, Africa’s largest economy, has consistently ranked high in global cryptocurrency adoption. According to a recent survey of 15 countries, Nigeria boasts the world’s most cryptocurrency-aware population.

Chainalysis’ “2023 Cryptocurrency Geography Report” placed Nigeria second in crypto adoption among 154 countries, underscoring its critical role in the global digital asset ecosystem.

However, despite the high adoption rate, the anticipated influx of foreign crypto investment has not materialized as expected.

The new regulatory framework and Quidax’s licensing could potentially alter this trajectory by providing a more stable and secure environment for both local and international investors.

Future Prospects for Nigeria SEC and Crypto Investments

The SEC’s proactive approach in regulating the digital asset industry is expected to attract more investors, both locally and internationally.

This move is seen as a significant step towards creating a more secure and transparent environment for cryptocurrency transactions in Nigeria.

The regulatory clarity provided by the SEC is likely to boost investor confidence and encourage more financial institutions to engage with the crypto market.

What You Should Know

In conclusion, the Nigeria SEC’s issuance of its first license to a local crypto exchange is a landmark event that could reshape the country’s digital asset landscape.

With Quidax now operating under formal regulatory oversight, the future looks promising for Nigeria’s crypto industry.

This development not only enhances the credibility of the Nigerian crypto market but also sets a precedent for other African nations to follow.