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The Nigerian Security Exchange Commission (SEC) has granted a provisional operating license to Quidax, a Lagos-based cryptocurrency exchange. This makes Quidax the first African crypto platform in Nigeria to receive such a license from national regulators.
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Buchi Okoro, co-founder and CEO of Quidax, expressed his excitement over the news. The Quidax’ CEO said “the granting of the crypto exchange license shows that the government is open to innovation and aims to build trust in the budding crypto ecosystem.”
He emphasised the significance of this regulatory approval in remarks with the media in Lagos.
Shift in Nigeria’s cryptocurrency regulation
This move represents a significant shift in Nigeria’s approach to cryptocurrency regulation. It also aligns with the government’s plans to introduce a comprehensive law next month. The upcoming legislation aims to overhaul Nigeria’s revenue administration process. It will specifically address the growing digital market, including the regulation of cryptocurrency.
In June, the SEC announced several key regulatory changes, including the launch of the Accelerated Regulatory Incubation Programme (ARIP). This new compliance program is designed to streamline the licensing process for virtual asset service providers (VASPs) and help them meet regulatory requirements.
Policy inconsistencies on cryptocurrency
With its new provisional license, Quidax will be the first approved gateway for businesses and individuals to access crypto trading in Nigeria.
Nigeria’s stance on cryptocurrency has been marked by policy inconsistencies, reflecting confusion and a lack of clarity on the best approach to digital transactions.
In 2021, the Central Bank of Nigeria (CBN) banned cryptocurrency transactions, directing financial institutions to close accounts associated with crypto activities. However, the SEC has taken a more open approach to regulating cryptocurrency, as evidenced by this latest development.
