The Securities and Exchange Commission has granted approval in principle to two digital asset exchanges, Busha Digital Limited and Quidax Technologies Limited giving them the status of legally recognised crypto trading platforms in the country under the Accelerated Regulatory Incubation Programme.
About Quidax Technologies, the commission added, “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. Quidax also utilises a digital wallet to enable its users to store, receive, and transact in a variety of cryptocurrencies.”
With reference to the operations of Busha Digital, the SEC stated that, “Busha operates a digital exchange that facilitates the buying and selling of crypto assets with fiat currency. 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, invest and make payments in cryptocurrencies.”
Five other firms had been admitted to test its models and technology under the SEC’s Regulatory Incubation Program (RI) which are Trovotech Ltd, Wrapped CBDC Ltd, HousingExchange.NG Ltd, Dream City Capital, and Blockvault Custodian Ltd.
This approval comes despite the negative stance of the Nigerian authorities to crypto trading, many Nigerians have continued to transact with digital assets due to allegation of the manipulation of the Nigerian currency through peer-to-peer crypto trading on the policies and actions of the Central Bank of Nigeria, which tends to distance the regulator from the market.
