The Securities and Exchange Commission (SEC) has granted approval to Busha Digital Ltd. and Quidax Technologies Ltd., allowing them to operate within the Accelerated Regulatory Incubation Program (ARIP). This initiative is aimed at offering Nigerian youths opportunities to engage in the capital market, aligning with President Bola Tinubu’s vision to involve the youth.

Dr. Emomotimi Agama, the SEC Director General, highlighted the commission’s cautious approach to ensure that these exchanges do not pose risks to the national economy or investors. The approval-in-principle granted enables the SEC to gain insight into the operations of crypto exchanges and virtual financial assets service providers.

Agama emphasized the SEC’s commitment to nurturing talent to address the challenges associated with these asset classes and to safeguard investors while fostering market growth. The program for digital assets exchanges by the commission stems from its Virtual Assets Service Providers Regulation, with the aim to oversee and comprehend the operations of crypto exchanges and virtual financial assets service providers.

While no exchange has received a full license yet, the SEC has granted an approval-in-principle, allowing companies to operate under controlled conditions. This approach enables the commission to evaluate the risks associated with these entities and provide guidance and regulations to ensure smooth operations.

Agama reiterated the SEC’s focus on ensuring that crypto exchanges adhere to regulations similar to those in other countries, preventing fraud against Nigerians. The commission’s careful strategy is designed to establish a framework that promotes youth involvement in the capital market while safeguarding investors and the national economy.