Why We Approved Crypto Exchanges- SEC

The Securities and Exchange Commission (SEC) of Nigeria recently approved two cryptocurrency exchanges, Busha Digital and Quidax Technologies, as part of a broader initiative to attract Nigerian youths to participate in the capital markets.

This move comes as the country responds to the growing interest in digital assets, particularly among its younger population.

According to SEC Director General Dr. Emomotimi Agama, this approval aligns with President Bola Tinubu’s vision of engaging Nigerian youths more actively in the financial sector.

SEC’s decision also reflects global trends in digital finance. The Commission’s regulatory incubation program is designed to closely monitor the activities of these exchanges, ensuring they operate within a safe framework that protects both the economy and individual investors. The exchanges are subject to SEC’s Virtual Assets Service Providers Regulation, which allows for detailed analysis of their operations and risks.

In addition to approving the crypto exchanges, SEC also admitted four other digital asset companies, including Trovotech Ltd and HousingExchangeNG Ltd, to test their technologies under its Regulatory Incubation Program.

This development is part of the Commission’s efforts to foster innovation while ensuring that regulations protect investors and promote ethical practices in the digital finance space.