The Securities and Exchange Commission has granted approval-in-principle to seven cryptocurrency firms under its regulatory sandbox framework.
The development is part of efforts by the Commission to regulate Nigeria’s fast-growing digital asset industry while allowing innovative financial technology businesses to operate within a controlled and supervised environment.
Under the regulatory sandbox, participating firms will be allowed to test their products, services and business models while being monitored by the SEC to ensure compliance with relevant regulations and investor protection requirements.
The approval-in-principle does not amount to full registration or a permanent operating licence but allows the selected firms to proceed through the regulatory process under the Commission’s supervision.
The move reflects the SEC’s efforts to create a balance between encouraging innovation in Nigeria’s digital economy and protecting investors from risks associated with cryptocurrency and other digital assets.
Nigeria remains one of Africa’s most active cryptocurrency markets, with growing interest in digital assets among individuals and businesses.
The SEC has continued to develop regulatory frameworks for virtual asset service providers as part of wider efforts to improve transparency, accountability and investor protection in the sector.
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