The Nigerian Securities and Exchange Commission (SEC) announced the official launch of a regulatory framework for cryptocurrency and virtual asset services, initiating a structured approach to managing digital asset activities in Nigeria. This regulatory framework aims to ensure oversight, transparency, and protection for investors in Nigeria’s rapidly growing cryptocurrency market.

In a bid to provide clearer guidelines, the SEC introduced the Accelerated Regulatory Incubation Program (ARIP) and the Regulatory Incubation Program (RI). The ARIP is designed to grant approvals-in-principle to firms already operating within Nigeria’s crypto sector, allowing them to legally continue operations while aligning with new regulations. Some of the first companies approved include Busha Digital Limited and Quidax Technologies Limited, which received provisional licenses as regulated Virtual Asset Service Providers (VASPs) under the SEC’s incubation programs.

Following the December 2023 decision by the Central Bank of Nigeria (CBN) to lift its ban on crypto transactions and assign regulatory duties to the SEC, the new framework aims to integrate digital assets into Nigeria’s financial landscape. It establishes specific guidelines for digital asset exchanges, custodians, and peer-to-peer platforms, setting requirements around security, compliance, and regular monitoring of trading activities to protect users and maintain stability in the market.