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The Securities and Exchange Commission (SEC) has stressed that only approved and endorsed digital exchanges and platforms will be authorised to carry out the business of cryptocurrency trading in Nigeria.
This information was obtained from the commission's website on Tuesday.
The commission warned the public against dealing with illegal operators without approval under the Accelerated Regulatory Incubation Programme (ARIP) or the Regulatory Incubation Programme (RI).
The SEC emphasised that ARIP and RI remained the only avenues for well-intentioned entities to legitimately introduce their digital products and services to the Nigerian capital market.
The commission however advised intending investors to always confirm credibility via the SEC information portals.
The statement read in part: “Intending investors are also reminded to always confirm from the various SEC information portals whether entities purporting to provide investment services are legally empowered to do so."
The capital market regulator had introduced the ARIP to strategically onboard firms that had commenced operations before the release of the Rules on Virtual Asset Service Providers in May 2022.
The RI programme was created to assess the business models of digital asset firms and test innovative products, services and technology in a real-time market environment under close supervision by the SEC, the regulator said.
Last week, the SEC approved in principle two digital asset exchanges, Busha Digital Limited and Quidax Technologies Limited, and admitted five firms to test their models and technology under the RI programme.
The Director-General of SEC, Dr Emomotimi Agama, attributed the recent approval of two cryptocurrency exchanges to the growing enthusiasm among young Nigerians for digital assets.
He underlined the need for a transparent regulatory framework that safeguards investors while fostering innovation.
