In a historic development, Quidax, an Africa-based crypto exchange platform has become the first crypto platform to be granted an operating license by the Securities and Exchange Commission (SEC).
The development marks the beginning of formal recognition and adoption of cryptocurrencies amid an ongoing regulatory spat between the Nigerian government and Binance Holdings Ltd, another crypto trading platform.
Speaking on the development, Quidax co-founder and CEO Buchi Okoro said the development shows that the government is open to innovation and aims to build trust in the growing crypto ecosystem.
Okoro said the SEC’s latest action is not simply a “change” in regulatory outlook, but rather “the result of a years-long collaborative effort that took time to ensure resources were in place to ensure compliance.”
Okoro commended the SEC for its decisive action to bring order, trust and investor protection to the Nigerian crypto industry.
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The regulatory approval now allows Quidax to collaborate with banks and other financial institutions, pending approval from the Central Bank of Nigeria. The SEC license follows an amendment to its regulations on June 21, covering digital asset issuance, offering platforms, exchanges and custody.
A key part of the regulatory overhaul is the introduction of an Accelerated Regulatory Incubation Program designed to help virtual asset service providers adapt to new regulatory requirements.
Despite this progress, there are initial concerns that stringent licensing requirements could significantly reduce the number of local crypto exchanges.
The Nigerian SEC mandates a minimum initial capital requirement of 500 million naira ($556,620) and the current Fidelity Insurance Bond covers at least 25% of the minimum paid-up capital set for digital asset exchanges and digital asset offering platforms.
By Babajide Okeowo
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