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The Securities and Exchange Commission (SEC) has clarified that its recent approval-in-principle granted to two crypto exchanges aligns with the commission’s commitment to enabling Nigerian youths to actively participate in the capital market. This initiative also supports President Bola Ahmed Tinubu’s focus on youth engagement in the country.
During a meeting in Abuja, SEC Director General Emomotimi Agama emphasized the importance of creating a structure that fosters the inclusion of young Nigerians and other citizens in the capital market. The SEC recently granted approvals to Busha Digital Limited and Quidax Technologies Limited, two cryptocurrency platforms, as part of this initiative.
“It’s essential that we act proactively,” Agama said. “Nigeria cannot be left out of the global shift toward digital assets. As a forward-thinking institution, the SEC is committed to ensuring that we remain aligned with global developments in this space.”
He added that many young Nigerians are already involved in cryptocurrency, and instead of shutting them out, the government is committed to their inclusion. “President Tinubu’s vision is to ensure inclusivity for young people in the capital market, and this is why regulation is crucial. Our role is to protect investors and grow the market,” Agama explained.
Agama highlighted that the SEC is proceeding cautiously to ensure that these institutions do not pose risks to the Nigerian economy or to investors. He noted that the commission’s programme for regulating digital asset exchanges falls under its Virtual Assets Service Providers (VASP) regulation, designed to provide a comprehensive understanding of crypto exchanges and virtual financial assets.
The SEC’s approach originated from its initial Regulatory Incubation Programme, aimed at studying new fintech platforms and products. This was done to understand the associated risks and to protect investors while promoting market growth.
“We didn’t want to stifle innovation, so we launched a Sandbox initiative to better grasp what these companies are offering and how they impact customers, the public, and the Nigerian economy,” Agama noted. The Sandbox program led to the establishment of the Accelerated Regulatory Incubation Programme, allowing companies to be studied while under regulatory oversight.
Agama emphasized that although the SEC has not yet fully licensed any crypto exchange, the approval-in-principle serves as a controlled experiment. Companies that pass regulatory tests are invited into the incubation programme, allowing the SEC to assess their operations, risks, and impact on the economy.
“This approach lets us evaluate the risks these exchanges pose to the economy, investors, and the companies themselves. It’s crucial that we guide them properly to ensure they operate within the regulatory framework and don’t cause harm to Nigerians or the broader economy,” Agama concluded.
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