How has the crypto industry been performing recently?

The past few months have been remarkable. Bitcoin and cryptocurrency, in general, have seen significant growth, thanks, partially to the Trump-Pump, or Trump Effect, following the election of President-elect Donald Trump.

This is creating more optimism, interest and activity in the market. This is an exciting time for the industry, as more people are recognizing its potential. His nomination of pro-crypto advocate Paul Atkins to lead the Securities and Exchange Commission further improved confidence in the market and indicates President-elect Trump’s potentially favorable stance on cryptocurrencies.

We’ve also observed increased regulation and licensing efforts, which are positive developments. These steps provide clarity and a structured framework for operators to participate in the ecosystem. The Nigerian crypto industry is experiencing a pivotal moment, and it’s fantastic to see stakeholders moving toward creating a robust and sustainable market.

The Nigerian Securities and Exchange Commission (SEC) in particular has taken commendable steps, including bringing operators into the sandbox and issuing licenses under a well-defined framework. This bold move has made it easier for companies like Quidax to engage in the ecosystem confidently and securely.

What has Quidax’s experience been like working with the SEC?

Our journey with the SEC has been long and evolving. We started the process some time  ago, but things shifted dramatically in 2024 with the arrival of the new administration at the SEC, led by the Director-General, Dr. Emomotimi Agama.

This leadership team truly understands cryptocurrency and digital assets, and their knowledge was evident in the new licensing framework they developed.

Engaging with the SEC now is like night and day compared to previous years. The new leadership, including the board, Director-General, and executive commissioners, brought a fresh perspective. Their proactive approach has been a game changer, making it easier for operators to align with regulatory expectations.

Do you feel the new SEC administration understands digital assets better than before?

Absolutely. The current administration has demonstrated a deeper understanding of digital assets, and this clarity is reflected in how they engage with the industry. As the No 2 worldwide in crypto adoption, as stated by ChainAnalysis report, Nigeria has an important role to play in the global cryptocurrency ecosystem, and the SEC’s framework enables us to participate meaningfully and capture value locally from the global industry.

Having this structure in place ensures that operators, investors, and the government can all benefit. It’s a significant step forward for digital inclusion and economic growth.

What is the broader impact of cryptocurrency in Nigeria?

Cryptocurrency offers immense potential for Nigeria. On a personal level, it provides individuals with opportunities to invest, earn, and create wealth. Beyond that, it drives innovation, job creation, and entrepreneurship.

Nigeria is already ranked No. 2 globally in crypto adoption, according to ChainAnalysis. Without a clear framework, however, we risk losing out on foreign direct investment (FDI) in this space. In the absence of regulatory clarity, much of the value generated within Nigeria’s crypto ecosystem flows out, boosting foreign companies without benefiting our local economy.

When you consider the tax revenue potential and the ability to support startups building in Nigeria, the opportunities are immense. With the right regulatory environment, we can unlock a new wave of growth and innovation.

How does Quidax contribute to the crypto ecosystem?

Our role is to provide a safe, secure, and reliable platform for crypto transactions. We ensure that customers are properly verified through Know Your Customer (KYC) processes and that their investments are secure.

We’re also committed to collaboration. Whether it’s working with regulators, law enforcement, or other stakeholders, our goal is to create a safe ecosystem for everyone.

Quidax enables customers  to seamlessly buy, sell, and move digital assets within a regulated environment, making it easier for people to participate in the crypto economy.

What is your outlook for the crypto industry in 2025?

Globally, 2025 will likely be an exciting year for cryptocurrency. The optimism following recent market rallies, driven partly by global events like the U.S. election, suggests continued momentum. I’m cautiously optimistic about sustained growth in the market.

In Nigeria, the crypto industry is poised for even greater impact. Cryptocurrency provides a unique avenue for Nigerians to connect with the global economy, offering opportunities for financial growth and innovation.

With platforms like Quidax leading the way, we’ll see increased adoption, better education, and a more vibrant ecosystem.

Is Nigeria’s regulatory environment ready to support the crypto industry’s growth?

The current framework is a massive leap forward compared to where we were just a few years ago. However, regulation is an evolving process, especially in an industry as dynamic as crypto.

As operators, regulators, and other stakeholders continue to learn and adapt, I believe we’ll see even more refined policies that ensure investor safety and market stability.

This is the SEC’s primary mandate and we’re committed to working closely with the regulators to build a thriving and secure ecosystem.

Dr. Emomotimi Agama, the director general, Securities and Exchange Commission (SEC) Nigeria, made the remark during his keynote address at the recent ‘Tokenised Economy 2024 Conference’ themed: Digital Asset Tokenisation – The Way Forward.

He said that regulators can provide the necessary oversight to ensure compliance and protect consumers, while financial institutions can leverage their expertise to integrate digital assets into the broader financial system.

Speaking at the event organized by Cyberchain at Baze University in Abuja, Dr. Agama noted that the tech community, with innovative solutions, can drive the development of secure and efficient tokenisation technologies.

“This collaborative approach will pave the way for a robust and sustainable digital asset ecosystem. The innovation that we expect from you cuts across every asset where solutions can be provided. There are opportunities in real estate, hard and soft commodities, traditional financial assets, art and many more. There are solutions to many problems in developing countries such as Nigeria and I encourage you to think of how you can achieve this”.

“SEC has positioned Nigeria as a regional leader in digital asset regulation and innovation by developing forward-thinking regulatory frameworks and fostering a supportive environment for digital asset businesses”.

He said that SEC Nigeria, on its part as the primary regulator of the capital market, and one also mandated to develop same market, recognises the potential of blockchain and digital assets to revolutionise the capital markets.

“Wehaveintroducedseveralmeasurestoensurethattheseinnovationsareharnessedresponsibly:a.Accelerated Regulatory Incubation Programme (ARIP) and Regulatory Incubation(RI) Programme: The ARIP and RI Programmes were designed to on-board firms operating in the digital asset space and provide a controlled environment to test newmodels, products, and services. These programmes foster innovation while ensuring that robust consumer safeguards are in place.

“The recent approval-in-principle granted to two digital asset exchanges participating in this programme is testament to our commitment to enabling innovation.

“Our regulatory stance is clear, digital assets such as cryptocurrencies and other tokenised assets are classified as securities unless proven otherwise. We have established a registration framework that requires issuers and sponsors to prove that their assets do not qualify as securities.

“This ensures that investor protection and market integrity are upheld while providing a level playing field for legitimate market participants.

“SEC took commendable steps to establish a regulatory framework that governs the issuance of digital assets, recognising their potential to transform our economy while ensuring the protection of investors.

“To promote transparency and safeguard investor interests, we mandated that issuers of digital securities must register their offerings. This process includes the submission of a detailed prospectus outlining the offering’s characteristics, the business operations involved, potential risks, and the intended use of proceeds. Such disclosures are crucial in fostering informed decision-making among investors and ensuring they understand the opportunities and risks associated with their investments.

“In addition to registration and disclosure requirements, SEC emphasises the importance of consumer protection within the digital assets space. Issuers are encouraged to implement robust measures to prevent fraud and ensure transparency in all transactions.

“Furthermore, the regulatory framework mandates that digital asset service providers, including exchanges and wallet services, obtain registration with SEC and adhere to applicable regulations. This establishes a level of accountability and builds trust in our developing digital asset ecosystem.

The SEC boss further said that to combat illicit activities and promote a secure trading environment, the Commission requires all digital asset service providers to implement comprehensive anti-money laundering measures.

“By fostering a regulatory landscape that prioritises investor protection and accountability, we are paving the way for innovation in the digital asset space while ensuring that we uphold the principles of integrity and transparency that are fundamental to our financial system.

He concluded by saying, “digital assets offer an opportunity to transform our economies and societies, and we commit to this journey with a shared vision, a spirit of collaboration, and an unwavering focus on building a prosperous and inclusive Africa”.