Nigeria’s thriving crypto space just added another milestone as Quidax becomes the first crypto exchange to be provisionally licensed in the country of over two hundred million inhabitants, and Africa’s most populous country.
This laudable milestone is expected to be a morale boost for other domestic exchanges seeking to be licensed in one of Africa’s top economies. Quidax was founded in Africa.
Shot of Adrenaline
The company describes its pioneering provisional license as a “shot of adrenaline” for Nigeria’s cryptocurrency community. It also says the Commission’s policy will help the industry innovate and expand further.
“We commend the SEC under the leadership of Dr. Emomotimi Agama for taking the bold step to bring order, confidence, and investor protection to our industry. This is a big win for Nigeria’s embrace of crypto, and we are glad to be a part of this historical moment,”
These are the words of an elated Buchi Okoro, Co-founder and CEO of Quidax while praising the SEC for its landmark approval. He declared that safety and customer satisfaction remain core priorities at Quidax.
The SEC policy comes at a time of increased backlash over laws perceived as anti-cryptocurrency in the country.
The well-publicized conflict between Binance, one of the world’s top exchanges and Nigeria’s regulators has led to the halting of Binance operations in Nigeria. Tigran Gambaryan, a Binance official is also currently under detention in the country.
Some other crypto exchanges that have exited Nigeria’s finance system due to perceived unfavourable regulatory climate include, OKX and KuCoin.
Increased Collaboration
With this development, Quidax now has an opportunity for enhanced collaboration with Nigeria’s other financial institutions, including banks, albeit the new SEC rule still has to be approved by Nigeria’s Central Bank.
The licensing comes on the heel of broad regulatory changes covering areas such as Exchange and Custody, Digital Asset Issuance, and Offering Platforms.
Notably, the SEC’s regulatory modifications include a novel Accelerated Regulatory Incubation Programme (ARIP). The Programme aims to assist virtual assets service providers (VASPs) achieve compliance with new rules.
Lower than Expected Infux of Crypto Capital
Even with the high rate of cryptocurrency adoption in Nigeria, the expected increase in foreign crypto investment has not exactly been the case. This is one area where the SEC’s approval for Quidax can be impactful. It can help bring about greater stability and security for both foreign and local investors.
Nigeria is one of Africa’s top crypto markets. According to Chainalysis, African countries collectively received Bitcoin estimated at $117 billion from July 2022 to June 2023.
