The Commission underscored the companies' legal standing as crypto trading platforms in Nigeria.

The Securities and Exchange Commission (SEC) of Nigeria has granted approval-in-principle to two cryptocurrency exchanges, Quidax and Busha, making them legally recognised crypto trading platforms in the country. 

The two exchanges were approved under the Commission's Accelerated Regulatory Incubation Programme (ARIP). 

The Commission also announced that it has accepted four companies to test their models and technology in its Regulatory Incubation (RI) Program.

In the case of Busha, the company runs a digital exchange that allows consumers in Nigeria and other developing nations to trade cryptocurrency for fiat currency. 

On the other hand, Quidax Technologies Limited operates a cryptocurrency trading platform in Nigeria that uses blockchain technology to list and trade existing crypto tokens.

While noting that the aforementioned approvals-in-principle are a precursor to the SEC's award of full registration, the Commission underscored the companies' legal standing as crypto trading platforms in Nigeria. 

The Commission explained: “The SEC uses this medium to reiterate that only approved digital exchanges and platforms are legally authorised to carry out the business of crypto trading in any form in Nigeria.

“In this regard, the ARIP and RI remain the only avenues for well-intentioned entities to legitimately introduce their digital products and services to the Nigerian capital market.

“The public is strongly advised to refrain from dealing with illegal operators who have not applied to and received the SEC’s approval under the ARIP or the RI Program.

“Intending investors are also reminded to always confirm from the various SEC information portals whether entities purporting to provide investment services are legally empowered to so do.”