SEC admits seven crypto firms into regulatory incubation programme

The Securities and Exchange Commission has admitted seven digital asset companies into its Accelerated Regulatory Incubation Programme (ARIP), expanding regulatory oversight of Nigeria’s growing cryptocurrency and blockchain industry.

In a statement published on its website on Friday, the commission said the firms had received approval-in-principle, allowing them to operate within a supervised framework while undergoing assessment for full regulatory authorisation.

The newly admitted companies are Bitbarter Technologies Limited, Luno Fintech Nigeria Limited, GetEquity Limited, Koinkoin Global Network Limited, Wrapped CBDC Ltd, Trovotech Ltd and Blockvault Custodian Ltd.

According to the SEC, the incubation programme enables digital asset operators to function under regulatory supervision while the commission evaluates their compliance with governance, risk management and operational standards before deciding on full licensing.

The regulator explained that approval-in-principle does not amount to a final operating licence or regulatory endorsement, noting that participating firms must satisfy additional requirements during the incubation period.

Under the programme, the SEC will assess areas including asset custody, investor protection measures and safeguards against fraud, market abuse and operational risks.

The latest admissions follow the inclusion of Quidax and Busha in the programme in August 2024, as part of efforts to establish a structured licensing framework for digital asset service providers.

The commission said the initiative is intended to promote responsible innovation while strengthening investor protection, transparency and confidence in Nigeria’s capital market.

It also urged investors to verify the regulatory status of firms offering investment products or digital asset services through the commission’s official channels before engaging with them.

Nigeria has intensified oversight of the cryptocurrency sector following the exit of Binance from the country amid regulatory disputes. Since then, authorities have introduced stricter registration, re-registration and licensing requirements aimed at bringing digital asset operators under formal supervision.