Following the government’s shift in position regarding digital assets, 50 cryptocurrency exchanges have applied for operating licenses in the nation, according to Emonotimi Agama, director-general of the Securities Exchange Commission (SEC).
This was revealed by the DG on Wednesday during a fireside chat at the BusinessDay Blockchain Conference in Lagos. The SEC declared in August that it had given two Digital Asset Exchanges preliminary approval to start up under its Accelerated Regulatory Incubation Program (ARIP). Five businesses were also accepted into its Regulatory Incubation Program to test their models and technologies.
The approved firms include: Busha Digital Limited, Quidax Technologies Limited, Trovotech Ltd, Wrapped CBDC Ltd, HousingExhange.NG Ltd, Dream City Capital, and Blockvault Custodian Ltd.
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, on the other hand, 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.
At the time, the SEC had noted that additional license applications were being assessed and that approvals-in-principle would be granted on a case-by-case basis once the requirements were met.
According to the DG on Wednesday, the regulator received 50 applications and has accepted seven firms into its programmes. “Our work at the SEC is to protect investors and foster market development,” he said, noting that while the commission is open to innovation, businesses must meet regulatory and compliance requirements to ensure the growth of a stable and sustainable digital economy.
He explained that the government is receptive to crypto and blockchain because it has seen the country’s youths adopt the technology. He, however, noted that the pace of acceptance of digital assets may vary across different sectors but will eventually happen.
“For Innovators, we encourage you to seize the opportunity to develop blockchain solutions tailored to Africa’s unique needs. Focus on solving real-world problems, such as financial exclusion, inefficient supply chains, and lack of transparency in governance,” he added.
During another fireside chat, Buchi Okoro, Quidax’s chief executive officer, noted that regulation helps check operators’ activity in the space and protect investors. He said that much of the fraud carried out with crypto, while alarming, pales in comparison with those done through traditional channels.
