Nigeria sets benchmark for crypto regulation with licensing of Quidax, Busha

Nigeria has emerged as a trailblazer in African cryptocurrency regulation, following the recent approval of Quidax and Busha crypto exchanges by the Securities and Exchange Commission (SEC).

The President of the Stakeholders in Blockchain Technology Association of Nigeria (SiBAN), Mr. Obinna Iwuno, highlighted this milestone in Lagos, emphasizing the significance of this development for both Nigeria and the broader African crypto landscape.

Iwuno explained that the SEC’s decision to license these platforms not only enhances Nigeria’s reputation but also lays the groundwork for more comprehensive crypto regulations that the industry has long awaited.

As Nigeria accounts for over 60 per cent of Africa’s crypto adoption and trade volume, this move positions the country as a leading example for others on the continent.

Despite the progress, Iwuno pointed out that Nigeria’s cryptocurrency sector has faced significant hurdles, including the Central Bank of Nigeria’s (CBN) 2021 ban on crypto transactions and ongoing controversies involving Binance officials.

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He said these challenges have created a negative global perception, discouraging potential investments and partnerships.

However, the new licenses are seen as a turning point, marking Nigeria as a leader in innovation and a prime destination for crypto-related investments.

“The SEC’s decision is a vital step,” Iwuno stated. “It shows the world that Nigeria is reclaiming its leadership position in Africa by issuing these operating licenses, which also signal the beginning of broader regulatory frameworks.”

While celebrating this achievement, Iwuno also urged the Nigerian government to resolve the ongoing issues with Binance, stressing the importance of upholding the law and protecting human rights in the process.

The SEC’s recent announcement of granting Approval-in-Principle to Quidax and Busha under the Accelerated Regulatory Incubation Program (ARIP) reflects the commission’s commitment to fostering a regulated and secure crypto environment in Nigeria.

Additionally, four other companies have been admitted to test their models under the Regulatory Incubation (RI) Program, with more applications currently under assessment.

This move by Nigeria’s SEC is expected to not only boost the country’s standing in the global crypto community but also attract significant investments and technological advancements in the near future.