Nigeria Issues First Batch of Blockchain Operating Licenses! Existing companies must complete registration applications within 30 days

According to a press release from the Nigerian Securities and Exchange Commission, in furtherance of its commitment to capital market innovation while ensuring investor protection, the country's securities commission has announced the approval of two cryptocurrency exchanges to operate under the Accelerated Regulatory Incubation Program (ARIP). Additionally, five other companies have been approved to further comply under the SEC's Regulatory Incubation Program. ARIP was announced in June this year as a plan to encourage Virtual Asset Service Providers (VASPs) to comply with its regulatory framework. Existing companies have 30 days to apply for the program.

Not Just Exchanges Approved for Registration, Tokenized Real Estate and CBDC Make Compliance List

It is understood that the two exchanges approved through the country's regulatory incubation program are Quidax and Busha. This aligns with our previous assumption that the country's regulatory direction may be to support smaller-scale exchanges willing to comply with regulations, rather than large international offshore operators.

The other five approved exchanges are: Trovotech, Wrapped CBDC ltd., HousingExchange, Dream City Capital, and Blockvault Custodian Digital Assets ltd. Of these, Wrapped CBDC's plan to issue a stablecoin (cNGN or c₦) in Nigeria, pegged to fiat currency, to facilitate local and cross-border crypto payment transactions is particularly interesting.

Additionally, HousingExchangeAfrica assists developers in raising funds through tokenizing real estate and provides a pathway for clearing investments through integrated exchange functionalities. DreamCity has developed a digital real estate investment platform that offers investors opportunities in residential and commercial real estate equity. The model simplifies and secures investors' equity and assets through a Special Purpose Company (SPC) framework.

Quidax: Commending SEC Chairman's Bold Move

According to reports, Quidax founder and CEO Buchi Okoro stated in a release, "We commend the SEC under the leadership of Emotimi Agama for taking a bold step that brings order, confidence, and investor protection to our industry." "This is a huge win for Nigeria embracing cryptocurrencies, and we are excited to be a part of this historic moment." Emotimi Agama mentioned here is the newly appointed Chairman of the Nigerian Securities and Exchange Commission, whose regulatory-friendly stance we have previously reported.

The Other Side of Compliance: Binance Executives Still Detained

Despite the announcement of the first compliance list in Nigeria, the dispute between the country's government and international exchanges is just beginning. Since February, Binance executive Tigran Gambaryan has been detained by Nigerian authorities, with reports of his deteriorating health, facing medical neglect and inhumane treatment. His trial is set to begin on September 2, and former Binance CEO Richard Teng has spoken out for him, stating that authorities have prevented him from meeting with his legal team.

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