The Securities and Exchange Commission, SEC, says it has granted two digital assets exchanges “approval-in-principle” to commence operation under the accelerated regulatory incubation programme.
SEC, in a statement on Thursday noted that the companies approved are Busha Digital Limited and Quidax Technologies Limited.
The approval comes a week after the commission disclosed plans to license providers of virtual assets — including cryptocurrencies — to support youths and protect investors as adoption rates surge in Nigeria.
The SEC said the ARIP involves different cohorts, which comprise two digital asset exchanges, four digital asset offering platforms and one digital asset custodian.
“Busha operates a digital exchange that facilitates the buying and selling of crypto assets with fiat currency,” the agency said.
“It enables individuals and businesses in Nigeria and other developing economies to access basic digital asset investment services.
“Busha’s customers use the mobile and web applications to buy, sell, store, send, receive, trade and invest and make payments in cryptocurrencies.
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“Quidax Technologies Limited operates a cryptocurrency trading platform in Nigeria. The platform leverages blockchain technology to list and trade already issued crypto tokens (assets).
“The services are provided via a proprietary blockchain owned and controlled by Quidax. The exchange platform is both web and mobile enabled for ease of access and use.”
The SEC said Quidax also utilises digital wallets to enable its users to store, receive, and transact in “a variety of cryptocurrencies”.
The statement noted that five firms have been admitted to test their models and technology under the SEC’s regulatory incubation programme.
“They are Trovotech Ltd, Wrapped CBDC Ltd, HousingExhange.NG Ltd, Dream City Capital and Blockvault Custodian Ltd,” the agency said.
“The SEC recently introduced the ARIP to strategically on-board firms which had commenced operations prior to the release of the rules on virtual asset service Providers in May 2022.
“Conversely, the RI Program was created to assess the business models of digital assets firms and test innovative products, services and technology in a real-time market environment under close supervision by the SEC.” the statement read.
The commission said the current cohort of the ARIP and the RI programme is characterized by the increased use of distributed ledger technology in creating and trading crypto assets.
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