Nigeria’s SEC issues first license to local cryptocurrency exchange
As the legal climate evolves, additional local exchanges will likely follow Quidax’s lead and strive to meet SEC criteria. The Nigerian Securities and Exchange Commission has granted Quidax, an African-based cryptocurrency exchange, its first provisional operating license.
This decision marks the start of legal recognition and regulatory monitoring for the country’s digital asset market. According to a press release shared with Cointelegraph, the SEC license allows Quidax to operate as a registered cryptocurrency exchange in Nigeria. Quidax stated that the SEC’s approval represents a “shot of adrenaline” for the Nigerian crypto community, promoting more innovation and growth.
Regulatory milestone
Buchi Okoro, co-founder and CEO of Quidax, praised the SEC, particularly under Emomotimi Agama’s new leadership, for taking decisive measures to restore order, confidence, and investor protection to Nigeria’s crypto economy.
The regulatory license now allows Quidax to interact with banks and other financial institutions, subject to Central Bank of Nigeria’s approval. The SEC’s licensing comes after a complete modification to its rules on June 21 that addressed digital asset issuance, offering platforms, exchange, and custody.
The Accelerated Regulatory Incubation Programme, which is intended to assist virtual asset service providers in complying with new regulatory standards, is a major aspect of the regulatory revamp.
The Nigerian Securities and Exchange Commission (SEC) requires a minimum upfront capital requirement of 500 million naira ($556,620) and a current Fidelity Insurance Bond covering at least 25% of the statutory minimum paid-up capital for both digital asset exchanges and platforms.
Nigeria’s Crypto Landscape
Nigeria, Africa’s largest economy, has continuously placed top in worldwide bitcoin usage. According to a recent poll of 15 countries, Nigeria has the world’s largest cryptocurrency-aware populace.
According to Chainalysis’ “2023 Cryptocurrency Geography Report,” Nigeria ranks second in crypto adoption out of 154 nations, highlighting its essential position in the global digital asset ecosystem.
However, despite the high adoption rate, the predicted surge in foreign crypto investment has not materialized. The new legal framework, as well as Quidax’s licensing, have the ability to change this trajectory by making the environment more stable and secure for both local and international investors.
Buy and sell crypto in minutes with 0.20% trading fees at Bitdenex Exchange.