The CEO of Quidax, an African-focused digital assets exchange, Buchi Okoro, has said that the new cryptocurrency regulatory framework released by Nigeria’s Securities and Exchange Commission (SEC) would increase foreign direct investment (FDI), boost job creation, and digital inclusion in the country.
Speaking in an interview with Nairametrics, Okoro said that the introduction of the SEC’s structured licensing framework in 2024 represents a watershed moment for the industry.
Recall that the SEC recently granted an approval-in-principle to two exchanges, including Quidax to operate as legally recognised crypto trading platforms under its Accelerated Regulatory Incubation Program (ARIP) programme.
“The new administration at the SEC has demonstrated a profound understanding of cryptocurrency and digital assets.
“Their proactive and collaborative approach has brought clarity to the ecosystem, creating an enabling environment for operators, investors, and the government to thrive,” Okoro stated.
A new regulatory era
Okoro noted that Quidax’s interaction with the SEC illustrates the transformative impact of the regulatory advancements, adding that the journey with the commission has evolved significantly over the years, especially under the current leadership.
“The new leadership’s knowledge and fresh perspective have made it easier for operators to align with regulatory expectations. It’s no longer a guessing game; there’s now a structured path for operators to follow,” he said.
- According to the Quidax CEO, Nigeria’s prominence in the global cryptocurrency landscape is well-documented, with the country ranked second globally in cryptocurrency adoption, according to Chainalysis.
- Okoro highlighted the importance of retaining the value generated by this fast-growing industry within the local economy.
“With a clear regulatory framework, we can attract significant foreign direct investment and ensure that the benefits of cryptocurrency—from tax revenues to job creation and entrepreneurial opportunities—are realized domestically,” he noted.
Banks and crypto exchanges collaboration
He added that the SEC’s licensing framework also paves the way for greater collaboration between cryptocurrency exchanges, banks, and other financial institutions, subject to the approval of the Central Bank of Nigeria (CBN).
- This collaboration is expected to bridge the gap between traditional finance and digital assets, further boosting trust and adoption among Nigerians.
- Okoro stressed the importance of this development in creating a robust and interconnected financial ecosystem.
“With our digital assets license, Quidax is now able to collaborate more effectively with banks and financial institutions, enhancing the overall user experience and opening up new opportunities for innovation and growth,” he explained.
Backstory
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.
