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 signals the beginning of formal recognition and adoption of cryptocurrency amid ongoing regulatory face-off 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 budding crypto ecosystem.
Okoro said that the SEC’s latest action isn’t so much a “shift” in regulatory outlook, but instead a “result of years of collaborative effort that takes time to ensure the resources are put in place to ensure compliance.”
Okoro praised the SEC for its decisive action to bring order, confidence and investor protection to the Nigerian crypto industry.
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The regulatory approval now enables Quidax to collaborate with banks and other financial institutions, pending the Central Bank of Nigeria’s approval. The SEC’s licensing follows an amendment to its rules on June 21, which covered digital asset issuance, offering platforms, exchange and custody.
A notable part of the regulatory overhaul is the introduction of the Accelerated Regulatory Incubation Programme designed to help virtual assets service providers align with new regulatory requirements.
Despite these advancements, there was initial concern that the stringent licensing requirements might significantly reduce the number of local crypto exchanges
The Nigerian SEC mandates a minimum upfront capital requirement of 500 million naira ($556,620) and a current Fidelity Insurance Bond covering at least 25% of the stipulated minimum paid-up capital for both digital asset exchanges and digital assets offering platforms.
By Babajide Okeowo
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