Quidax co-founder and CEO Buchi Okoro called it a significant step for the exchange, as the Securities and Exchange Commission (SEC) and the Central Bank of Nigeria are generally skeptical of the industry. Receiving a temporary license shows that the local government is still open to innovation and willing to build trust in the growing cryptocurrency ecosystem, the Quidax chief said.
“Getting approval from the SEC is not so much a change in the agency’s views on cryptocurrency regulation, but rather the result of our years of compliance efforts,” Okoro said.
In late June, the Nigerian SEC gave local virtual asset service providers (VASPs) 30 days to re-register their businesses or face enforcement action. The license obtained by Quidax will allow the exchange to work with banks and financial institutions. In 2022, the Central Bank of Nigeria banned commercial banks from making cryptocurrency transfers, but this restriction was lifted in December 2023.
According to estimates by the Chairman of the Securities and Exchange Commission of Nigeria Emomotimi Agama, 33% of locals regularly use cryptocurrencies, and by 2028, the Nigerian crypto market could grow to $52.5 million. In July, the SEC required all crypto companies serving Nigerian citizens to open physical offices in the country.
Source: Bits
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