Regulatory shift in Nigeria sees temporary crypto licensure granted by the Securities and Exchange Commission (SEC)
In a groundbreaking move, the Securities and Exchange Commission (SEC) of Nigeria has approved in principle two digital asset exchanges – Busha Digital Limited and Quidax Technologies Limited – marking a significant shift in the country's approach to cryptocurrency regulation. This regulatory shift could potentially ease tensions between crypto businesses and Nigerian authorities.
Under the 2025 Investments and Securities Act, cryptocurrencies, stablecoins, Non-Fungible Tokens (NFTs), and other digital assets are now officially recognized as financial securities, subject to SEC oversight. This legal recognition enables legal ownership, transfer, and inclusion in estate planning under Nigerian law.
Crypto exchanges, wallet providers, and other crypto asset service providers must now obtain mandatory SEC licenses. The SEC has introduced the Approved Regulatory Incubation Program (ARIP), a sandbox-like regime, to facilitate compliant market entry while managing risks. Four additional firms have been admitted to test their models under the ARIP.
One such firm is Trovotech Ltd, which focuses on tokenizing real-world illiquid assets as securities. Another is Wrapped CBDC Ltd, the entity behind cNGN, a naira-pegged stablecoin reportedly backed by a consortium of financial institutions, fintech innovators, and blockchain experts.
Busha Digital Limited facilitates buying and selling of crypto assets with fiat currency and enables basic digital asset investment services in Nigeria and other developing economies. Meanwhile, Blockvault Custodian Ltd provides secured infrastructure for storage and management of digital assets.
HousingExhange.NG Ltd aims to enable real estate tokenization and investment, while Dream City Capital is developing a digital real estate investment platform.
The SEC advises potential investors to verify the legitimacy of investment services through SEC information portals. It has also warned the public against dealing with unauthorized operators. The commission has emphasized that only approved digital exchanges and platforms are legally authorized to carry out crypto trading in Nigeria.
This regulatory framework could pave the way for clearer guidelines and a more structured approach to cryptocurrency operations in Nigeria, fostering innovation and attracting foreign investment. However, some foreign platforms remain cautious due to residual regulatory friction and unclear Central Bank of Nigeria (CBN) stances, especially among banks.
In summary, Nigeria’s cryptocurrency regulation has transitioned from prohibition and legal uncertainty to a structured compliance and licensing framework managed by the SEC, reflecting the growing demand and shaping a more secure and transparent digital asset market. The approvals mark a significant step forward in Nigeria's digital asset ecosystem, setting the stage for a potentially vibrant and regulated digital economy.
- The Securities and Exchange Commission (SEC) of Nigeria's approval of two digital asset exchanges, Busha Digital Limited and Quidax Technologies Limited, signifies a shift in Nigeria's regulatory policy towards cryptocurrency.
- Cryptocurrencies, stablecoins, Non-Fungible Tokens (NFTs), and other digital assets are now officially recognized as financial securities under the 2025 Investments and Securities Act, subject to SEC oversight.
- Exchanges, wallet providers, and other crypto asset service providers must now obtain mandatory SEC licenses in order to operate legally in Nigeria.
- The SEC's Approved Regulatory Incubation Program (ARIP) provides a sandbox-like regime for compliant market entry while managing risks, with four additional firms admitted to test their models under the ARIP.
- Trovotech Ltd is focusing on tokenizing real-world illiquid assets as securities, while Wrapped CBDC Ltd, the entity behind cNGN, is developing a naira-pegged stablecoin reportedly backed by a consortium of financial institutions, fintech innovators, and blockchain experts.
- The SEC is encouraging potential investors to verify the legitimacy of investment services through SEC information portals and has warned against dealing with unauthorized operators, stating that only approved digital exchanges and platforms are legally authorized to carry out crypto trading in Nigeria.
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