The Stakeholders in Blockchain Technology Association of Nigeria (SiBAN) has commended the Securities and Exchange Commission (SEC) of Nigeria for granting ‘Approval-in-Principle’ to two digital asset exchanges as part of its Accelerated Regulatory Incubation Program (ARIP).
In addition, five other companies have been admitted into the Regulatory Incubation (RI) program, a step that SiBAN views as a positive impact toward enhancing Nigeria’s presence in the digital asset industry.
SiBAN believes this regulatory advancement will help establish Nigeria as a front-runner in Africa’s growing digital asset market.
In offering a more defined and rigorous regulatory structure, the SEC aims to strike a balance between encouraging innovation and safeguarding investors.
The ARIP initiative, introduced by the SEC, is designed to bring companies involved in virtual asset activities under a monitored regulatory framework. This allows them to continue operations while adhering to emerging regulations.
A key feature of this program is the regulatory “sandbox,” which enables these companies to test their digital offerings under close supervision. This approach is seen as a way to ensure the safety of consumers and maintain the integrity of the market.
Toritseju Kaka, Chairman of SiBAN’s Caretaker Committee, responded to the development by highlighting the forward-looking approach of the SEC. He noted that by creating a structured pathway for compliance, the SEC is protecting investors and also encouraging innovation within Nigeria’s digital economy.
Kaka noted that these regulatory steps would likely bolster confidence in the digital asset space, attract both domestic and international investments, and contribute to the nation’s economic growth.
While two companies have been granted provisional approvals, other applications are still under review. These will be considered individually and approved if they meet the necessary criteria set out by the SEC.
SiBAN suggested that the SEC could enhance transparency by disclosing the total number of applications received and providing details on future cohorts for new applications.
In ensuring the continued growth of the digital asset market, SiBAN is calling on all players, both local and international, to engage with the SEC’s regulatory framework and ensure full compliance.
The organisation believes that these initiatives open doors for firms to introduce innovative solutions that could reshape Nigeria’s financial industry.
SiBAN, a self-regulatory organisation, is focused on advocating for the responsible adoption of blockchain technology and digital assets in Nigeria. It aims to promote financial inclusion and technological innovation through collaboration, education, and industry advocacy.
