Nigerian Securities and Exchange Commission issues first License to Crypto Exchange Quidax

The Nigerian Securities and Exchange Commission (SEC) has granted Quidax the first provisional operating license, marking a significant milestone for Nigeria's developing cryptocurrency industry.

According to the company, subject to additional approval from the Central Bank of Nigeria, the exchange stated that Quidax can now operate with banks and other financial institutions with this license. This will guarantee consumer safety and industry stability while fostering the growth of the cryptocurrency market.

The co-founder and CEO of Quidax, Buchi Okoro, commended the SEC for taking decisive action to instill confidence, order, and investor protection in the Nigerian cryptocurrency market, especially under the new leadership of Dr. Emomotimi Agama.

Nigeria has emerged as one of the cryptocurrency economies experiencing the quickest growth in recent times. In December of last year, the Central Bank of Nigeria lifted restrictions on Nigerian banks' capacity to handle cryptocurrency transactions, which had been in place for nearly two years prior to the ban on lenders using digital currencies.

On June 21, the SEC updated its regulations on digital asset issuance, exchange, offering platforms, and custody in June, announcing its plans to regulate the new asset class. It is anticipated that the regulatory environment will be improved by the amendment process.

In addition, the guidelines specified certain conditions for providing platforms, exchanges, and custody under the Accelerated Regulatory Incubation Program (ARIP). Notably, the goal of ARIP is to support virtual asset service providers (VASPs) in meeting the new legal requirements. There are still worries, though, that stringent policies and regulations may prevent new or local cryptocurrency exchanges from opening or from expanding.

Last month, it was revealed that OKX Nigeria will discontinue all services in Nigeria on August 30, 2024. The cryptocurrency platform announced the decision via email sent to its customers in Nigeria, citing recent changes in local laws and regulations. This news comes after similar withdrawals by other popular exchanges like Binance and KuCoin in Nigeria.

Furthermore, a week ago, the Nigerian government announced that new tax laws, including regulations for the country's cryptocurrency market, will be passed by September. The Federal Inland Revenue Service (FIRS) Executive Chairman of Nigeria, Dr. Zacch Adedeji, has stated that the bill that seeks to tax the cryptocurrency industry will be brought before parliament for approval.

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