The Securities and Markets Commission (SEC) of Nigeria made history when it gave Quidax, a big African bitcoin market, its first provisional working license. This is a big step toward making Nigeria’s digital asset business legal. It will now be regulated.
With the new license, Quidax can open a bitcoin market in Nigeria and do business there. This is a big step forward for the business of cryptocurrencies in that country. According to Quidax, this approval is a big win for the crypto community in the area and gives people hope that the field will continue to grow and change.
Emomotimi Agama is the new head of the SEC. Buchi Okoro, co-founder and CEO of Quidax, thanked them. His praise went to the SEC for trying to make the bitcoin market in Nigeria safer, more stable, and more honest. People who work for Quidax can work with banks and other financial institutions as long as the Central Bank of Nigeria gives them more permission.
Before this new rule, on June 21, the SEC changed all of its rules. The new rules include rules for trading sites, markets, storing digital assets, and giving them out. A big part of this change is the Accelerated Regulatory Incubation Program. Its goal is to help companies that provide services for virtual assets meet the new rules set by the government.
Before, people were worried that strict licensing rules would make it harder for local crypto platforms to start up. However, the fact that Quidax was able to get a license shows that the industry has a bright future ahead of it. A Fidelity Insurance Bond covering at least 25% of the capital plus at least 500 million naira in capital is required by the SEC’s new rules for digital asset markets and platforms. This is equal to about $556,620.
Nigeria has the biggest economy in Africa, and it is still a big part of how people around the world use cryptocurrencies. Recent polls show that the people of Nigeria are some of the most crypto-savvy in the world. In the market for digital assets, the country is very strong. However, the expected rise in foreign investment has not yet come true in full. Quidax may be able to make things safer now that it has new rules and a license. This could be a good model for other local markets.
