In a historic move, Quidax, an Africa-based crypto exchange platform, has become the first crypto platform to receive an operating license from the Securities and Exchange Commission (SEC).
This milestone marks the beginning of formal recognition and adoption of cryptocurrency in Nigeria, amid ongoing regulatory disputes between the government and Binance Holdings Ltd, another crypto trading platform.
Quidax co-founder and CEO Buchi Okoro commented that this development indicates the government’s openness to innovation and its commitment to building trust in the emerging crypto ecosystem.
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He noted that the SEC’s decision reflects not a “shift” in regulatory stance but the culmination of years of collaborative efforts to ensure compliance and proper resource allocation.
Okoro praised the SEC for its decisive measures to bring order, confidence, and investor protection to the Nigerian crypto industry.
With this regulatory approval, Quidax can now partner with banks and other financial institutions, pending the Central Bank of Nigeria’s endorsement.
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The SEC’s licensing aligns with a rule amendment on June 21, covering digital asset issuance, platforms, exchanges, and custody.
A key aspect of the regulatory update is the introduction of the Accelerated Regulatory Incubation Programme, aimed at helping virtual asset service providers comply with new regulations.
Despite these advancements, there were initial concerns that stringent licensing requirements might drastically reduce the number of local crypto exchanges.
The Nigerian SEC mandates a minimum upfront capital requirement of 500 million naira ($556,620) and a Fidelity Insurance Bond covering at least 25% of this amount for both digital asset exchanges and offering platforms.
