SiBAN Commends SEC for Granting Approval to Digital Asset Exchange Operators

The Stakeholders in Blockchain Technology Association of Nigeria (SiBAN) commends the Securities and Exchange Commission (SEC) of Nigeria for its recent granting of “Approval-in-Principle” to two digital asset exchanges under the Accelerated Regulatory Incubation Program (ARIP) and the admission of five firms into the Regulatory Incubation (RI) Program.

This progressive move will help Nigeria position itself as a leader in the digital asset space in Africa, providing a clearer and more robust regulatory framework that balances innovation with investor protection.

Designed by the SEC is to facilitate the onboarding of Entities that proposed to carry on virtual asset activities and whose applications have been filed with the Commission, the ARIP allows these platforms to continue operations while adhering to evolving regulatory requirements. By providing a regulatory “sandbox,” the SEC allows innovative digital products to be tested under supervision, ensuring both consumer safety and market integrity.

Toritseju Kaka, Chairman of SiBAN Caretaker Committee, reacting to the development, stated, “This initiative is a testament to the SEC’s forward-thinking approach to regulation. By creating a structured path for compliance, the SEC is not only protecting investors but also fostering a healthy and innovative digital economy.”

SiBAN strongly believes these steps will enhance trust in the digital asset ecosystem, drive foreign and local investments, and stimulate economic growth. As the digital asset market in Nigeria continues to grow, these initiatives provide much-needed clarity and assurance to all market participants, from new entrants to established firms.

We understand, from the SEC’s press release of August 29 2024, that apart from the entities that received Approvals-in-Principle, other applications received by the SEC are undergoing assessment and would be granted Approval-in-Principle on a case-by-case basis as they meet all SEC requirements.

For improved transparency, and consistent with global best practices, the SEC may consider stating the number of applications it received in the current cohort and also indicate when the next cohort will be opened for applications.

Meanwhile, SiBAN calls on all stakeholders in the industry, local and foreign, to embrace these regulatory frameworks and actively engage with the SEC to ensure full compliance and support for this new era of innovation. We encourage firms to leverage these programs to bring forward new ideas that can transform the financial landscape of Nigeria.