Crypto exchange, Yellow Card, has said it is now working towards securing regulatory approval from Nigeria’s Securities and Exchange Commission (SEC), banking on its experience from South Africa, where it recently secured a Crypto Asset Service Provider (CASP) licence.
VP of Global Operations and MD at Yellow Card Nigeria, Lasbery Oludimu, disclosed this in an interview with Nairametrics.
According to her, the company, which recently raised $33 million in Series C funding, has already submitted an application to the SEC under the Accelerated Regulatory Incubation Programme (ARIP) and is awaiting approval in principle.
Experience from South Africa
While noting that the licensing process in South Africa was rigorous and required the company to not only submit a comprehensive application but also face an on-site inspection, Oludimu said Yellow Card is prepared to face the same in Nigeria.
“The inspection process was detailed and thorough, highlighting the robust regulatory framework in the country.
“This experience has prepared us to meet similar challenges in Nigeria, where we continue to engage with the SEC under ARIP.
“Our operational transparency and investment in compliance will help us navigate these processes effectively,” she said.
Nigeria’s movement towards crypto regulation
On crypto regulation in Nigeria, Oludimu said the SEC has made remarkable strides in that regard through its ARIP program.
- According to her, ARIP is now propelling Nigeria to the forefront of global regulatory standards as it provides a structured pathway for crypto businesses to operate within a regulated framework.
- He said this also creates a safer environment for users and aligns with broader financial compliance goals.
“There is indeed a clear direction, with strong regulatory frameworks taking shape. There also exists clarity on the regulators to engage and supervise operations of the industry in Nigeria.
“This is a departure from the not-so-distant past and commendable progress which can only lead to shared prosperity for the country, businesses, and growing blockchain ecosystem believers,” she said.
New funding and partnership
She added that the recent Series C funding secured by the company now allows Yellow Card to accelerate its plans for expanding operations and enhancing its product offerings.
Specifically, he said the company is focusing on upgrading our stablecoin infrastructure, advancing its B2B API and Widget, and scaling its stablecoin rails to empower businesses with seamless solutions for liquidity management.
“Financial inclusion remains one of the key pillars of our mission. With this funding, we plan to enhance our infrastructure to support stablecoin adoption, which is already surging in Africa.
“In underbanked regions, particularly in Nigeria, this means offering accessible solutions for payments, and hedging against inflation, empowering individuals and businesses to participate in the digital economy,” she said.
- Oludimu added that Yellow Card has also entered into a partnership with PayPal and Xoom, marking a significant step in expanding access to affordable and efficient cross-border payment solutions across Africa.
- By leveraging PayPal USD (PYUSD) and blockchain technology, Yellow Card aims to streamline transfers of value, making them faster and more cost-effective.
- She added that the collaboration opens up new global trading opportunities and provides access to customers in Africa, who can now effortlessly buy, sell, and transfer PYUSD on the Yellow Card Platform without needing a PayPal account.
What you should know
Nigeria’s SEC in August this year announced that it had granted an Approval-in-Principle to two crypto exchanges Quidax and Busha, giving them the status of legally recognised crypto trading platforms in the country.
- The two exchanges were approved under the Accelerated Regulatory Incubation Program (ARIP) program of the Commission.
- In addition to that, the Commission also admitted four companies to test their models and technology under its Regulatory Incubation (RI) Program.
- The four firms are digital assets offering platforms, which include Trovotech Ltd, Wrapped CBDC Ltd, Dream City Capital, and HousingExhange.NG Ltd.
- The SEC noted that the listed above firms are not the only entities that have applied to ARIP and the RI Program.
It added that other applications received are being assessed and would be granted Approval-in-Principle on a case-by-case basis as they meet all its requirements.
