SEC: 50 cryptocurrency exchanges have applied for licences

Emonotimi Agama, director-general of the Securities Exchange Commission (SEC), says 50 cryptocurrency exchanges have applied for operational licences in the country.

Agama spoke during a fireside chat at the BusinessDay Blockchain Conference in Lagos on Wednesday.

On August 29, SEC granted Busha Digital Limited and Quidax Technologies Limited “approval-in-principle” to commence operation under the accelerated regulatory incubation programme (ARIP).

The ARIP was introduced by the SEC to onboard firms that had already begun operations before the release of the rules on virtual asset service providers in May 2022.

SEC also introduced the regulatory incubation programme (RIP) designed to evaluate the business models of digital asset firms and allow them to test their products, services, and technology in a real-world market environment under the regulator’s close supervision.

The commission also said additional licence applications were being assessed and that approvals-in-principle would be granted on a case-by-case basis once the requirements were met.

However, on September 4, the commission clarified that it has not yet fully licenced any cryptocurrency exchange.

Speaking at the conference, Agama said the commission received “50 applications and has accepted seven firms into its programmes”. 

“Our work at the SEC is to protect investors and foster market development,” he said.

“The commission is open to innovation. Businesses must meet regulatory and compliance requirements to ensure the growth of a stable and sustainable digital economy.”

He said the government is receptive to crypto and blockchain because it has seen the country’s youths adopt the technology. 

Agama added that the pace of acceptance of digital assets may vary across different sectors but will eventually happen.

“For innovators, we encourage you to seize the opportunity to develop blockchain solutions tailored to Africa’s unique needs,” he said.

“Focus on solving real-world problems, such as financial exclusion, inefficient supply chains, and lack of transparency in governance.”

On his part, Buchi Okoro, chief executive officer (CEO) of Quidax, said regulation helps check operators’ activity in the space and protect investors. 

Okoro also highlighted that so much fraud is being carried out with crypto.

While Okoro described the fraud rate as alarming, he said it pales in comparison with those done through traditional channels.

“Criminals typically adopt new technology faster than everyone else,” he said.

Okoro said more criminality will emerge and will dissipate as more genuine entities embrace the market.