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The Securities and Exchange Commission (SEC) has admitted seven new companies into its Accelerated Regulatory Incubation Programme (ARIP), expanding the number of digital asset firms operating under its regulatory sandbox as Nigeria continues efforts to formalise oversight of the sector.
The Commission disclosed this in a statement issued on Friday, noting that the newly admitted firms would receive Approval-in-Principle (AIP), allowing them to operate within the defined scope of the programme, subject to regulatory and supervisory conditions.
The seven companies are Bitbarter Technologies Limited, Luno Fintech Nigeria Limited, GetEquity Limited, Koinkoin Global Network Limited, Wrapped CBDC Ltd, Trovotech Ltd, and Blockvault Custodian Ltd.
The latest approval follows the SEC’s admission of Quidax and Busha into its regulatory framework in August 2024, as the Commission continues efforts to formalise oversight of Nigeria’s digital asset industry.
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What the SEC is saying
According to the SEC, the Approval-in-Principle confirms that each company has satisfied the admission requirements for participation in the programme.
However, the regulator stressed that the approval does not amount to a final operating licence.
- “An Approval-in-Principle confirms that an entity has satisfied the Commission’s admission requirements for the Programme. Please note that it is not a final licence and remains conditional on the entity’s continued compliance with all applicable regulatory, operational, and supervisory obligations,” the Commission said.
The SEC added that the latest admissions reflect its commitment to promoting responsible innovation while protecting investors and preserving market integrity.
More insights
Announcing the development in a separate statement, one of the approved companies, Luno, said the approval comes after an extensive engagement process with the SEC and marks another step in its regulatory journey in Nigeria.
The company, which began operations in Nigeria in 2015, said the approval provides a clearer regulatory pathway as it expands its operations in the country.
Luno Nigeria Chief Executive Officer, Ayotunde Alabi, described the approval as an important milestone for the business.
- “This is an important milestone for Luno Nigeria and a strong validation of our commitment to building responsibly in one of Africa’s most important cryptocurrency markets,” Alabi said.
He added that the approval would strengthen the company’s engagement with customers and institutional partners while supporting its expansion into business-to-business (B2B) services.
Luno said regulatory clarity has become increasingly important as more financial institutions, fintechs, payment providers, asset managers, and corporate organisations explore digital asset services.
According to the company, it intends to expand offerings for institutional clients, including digital asset infrastructure, stablecoin applications, treasury solutions, and crypto-as-a-service products.
Get up to speed
Two years ago, SEC 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, under the Accelerated Regulatory Incubation Program (ARIP) program of the Commission.
- In addition to that, the Commission at the time, said it 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.
- SEC also noted that there were several other applications being assessed under the ARIP programme, adding that the Approval-in-Principle would be granted on a case-by-case basis as they meet its requirements.
While noting that the referenced Approvals-in-Principle is a precursor to the grant of full registration by the SEC, the Commission emphasized the legal status of the companies as crypto trading platforms in Nigeria.
What you should know
The Accelerated Regulatory Incubation Programme is the SEC’s regulatory sandbox designed to fast-track the onboarding of digital asset service providers and other investment service providers while allowing the Commission to supervise their operations under controlled conditions.
The framework enables the regulator to assess emerging technologies and business models while ensuring investor protection and market integrity before granting full operational licences.
The initiative forms part of the SEC’s broader efforts to establish a structured regulatory framework for virtual asset service providers in Nigeria following years of uncertainty surrounding the sector.
Nigeria remains one of Africa’s largest cryptocurrency markets, with growing adoption by retail users despite periods of regulatory uncertainty.
