The Federal Government, through the Securities and Exchange Commission (SEC), has officially granted operational approvals to several crypto operators, showing an acceptance of the digital currency.

SEC’s approvals come after a series of crackdowns on the crypto industry in 2024, following the lifting of a ban on official crypto transactions in December 2023. The government had targeted crypto operators, blaming them for the naira’s volatility, tax evasion, and terrorism financing

On Thursday, August 29, the SEC announced that it had granted approval in principle to two Digital Asset Exchanges to begin operations under its Accelerated Regulatory Incubation Program (ARIP).

The SEC said five firms including Busha Digital Limited, Quidax Technologies Limited, Trovotech Ltd, Wrapped CBDC Ltd, and HousingExhange.NG Ltd, Dream City Capital, and Blockvault Custodian Ltd were admitted to test their models and technology under its Regulatory Incubation Program.

 

The ARIP was introduced by the SEC to onboard firms that had already begun operations before the release of the Rules on Virtual Asset Service Providers in May 2022. The RI Program was designed to evaluate the business models of digital asset firms and allow them to test their products, services, and technology in a real-world market environment under the regulator’s close supervision.

 

This latest development comes after Zacch Adedeji, chairman of the Federal Inland Revenue Service (FIRS) said that the government is drafting an executive bill to regulate the cryptocurrency industry.

“We need a law that regulates that area of our economy. This is why we are having this engagement with the legislators. We will regulate it in a way that is not injurious to the economic development of Nigeria,” he stated.

The SEC said these approvals are a precursor to granting full registrations and aim to ensure appropriate protection and transparency.

Nigeria is one of the largest peer-to-peer (P2P) crypto markets globally. According to Chainalysis, a global blockchain platform, crypto transactions in the country totalled $56.7 billion between July 2022 and June 2023.