Nigerian SEC grants provisional license to Cryptocurrency Exchange Busha
The Nigerian Securities and Exchange Commission (SEC) has granted cryptocurrency exchange Busha one of the first provisional licenses after Quidax to operate as a regulated virtual asset service provider.
I’m pleased to announce that Busha has been granted one of the first provisional licenses from the Nigerian Securities and Exchange Commission to operate as a regulated Virtual Asset Service Provider. pic.twitter.com/09ezpYqLLd
— Michael Adeyeri (@michael_adeyeri) August 29, 2024
This means Busha and Quidax are two of the first virtual asset service providers in Nigeria to receive an SEC license through the SEC's Accelerated Regulatory Incubation Program. For Busha and the larger Nigerian crypto community, this achievement represents a huge advancement.
Busha has put security, openness, and regulatory compliance far ahead of any mandatory requirements since its founding more than five years ago, the post added.
In a statement, the CEO said, "Our team has been steadfast in our dedication to promoting a safe, secure, and transparent environment for all Nigerian users of digital assets. This SEC provisional license is evidence of the high standards we have maintained from the beginning.
Busha pledges to keep working toward creating a more law-abiding and safe digital asset ecosystem in Nigeria and throughout Africa so that people from that continent can transact with assurance and comfort. Busha will function under the recently introduced Accelerated Regulatory Incubation Program (ARIP).
In light of Dr. Emomotimi Agama's recent appointment to the position, Quidax CEO and co-founder Buchi Okoro commended the SEC for taking decisive action to restore law, trust, and investor protection in the Nigerian cryptocurrency market.
Nigeria is now among the cryptocurrency economies that has grown the fastest in the last several years. The Central Bank of Nigeria removed limits on the ability of Nigerian banks to process cryptocurrency transactions in December of last year. These restrictions had been in place for almost two years before the ban on lenders using digital currencies.
This ends the months-long uncertainty surrounding the regulator's stance on the granting of cryptocurrency licenses. For cryptocurrency exchanges, which have come under increased scrutiny from Nigerian authorities since February 2024, it will also signify a substantial change in policy.
In 2021, the Central Bank of Nigeria (CBN) prohibited financial institutions from enabling cryptocurrency transactions due to market volatility, illegal activities, and inadequate consumer protection. Although the ban was lifted in 2023, it caused serious problems for both users and exchanges, forcing many of them to operate in a gray area of the law or shut down completely.
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