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Nigeria’s Securities and Exchange Commission admitted seven crypto companies, including Luno Fintech Nigeria, into its regulatory sandbox on June 3rd, bringing at least nine firms under supervised digital asset oversight.
The announcement, made on Friday in Nigeria, grants the firms Approval-in-Principle (AIP), allowing them to operate within the Commission’s regulatory sandbox under defined supervisory conditions.
The move is part of the SEC’s broader strategy to formalise oversight of Nigeria’s cryptocurrency industry, encourage responsible innovation, and protect investors while the country develops a comprehensive framework for digital assets.
The latest SEC approval-in-principle for crypto firms covers seven companies: Bitbarter Technologies Limited, Luno Fintech Nigeria Limited, GetEquity Limited, Koinkoin Global Network Limited, Wrapped CBDC Ltd, Trovotech Ltd, and Blockvault Custodian Ltd.
According to the Securities and Exchange Commission, each company met the admission requirements for participation in the Accelerated Regulatory Incubation Programme. However, the Commission clarified that the approval should not be interpreted as a permanent operating licence.
“An Approval-in-Principle confirms that an entity has satisfied the Commission’s admission requirements for the Programme. Please note that it is not a final licence and remains conditional on the entity’s continued compliance with all applicable regulatory, operational, and supervisory obligations.” — Securities and Exchange Commission (SEC)
The Commission said the SEC approval-in-principle for crypto firms reflects its commitment to fostering responsible innovation while maintaining investor protection and preserving the integrity of Nigeria’s capital market.
The latest approvals build on the SEC’s earlier decision in August 2024 to admit Quidax and Busha into its regulatory framework, reinforcing the regulator’s gradual approach to supervising virtual asset service providers.
Among the newly admitted companies, Luno Fintech Nigeria described the SEC approval-in-principle for crypto firms as a significant milestone following an extensive engagement process with the Commission.
Luno, which has operated in Nigeria since 2015, said the approval provides greater regulatory certainty as it continues expanding its services in one of Africa’s largest cryptocurrency markets.
“This is an important milestone for Luno Nigeria and a strong validation of our commitment to building responsibly in one of Africa’s most important cryptocurrency markets.” — Ayotunde Alabi, Chief Executive Officer, Luno Nigeria
According to Alabi, the approval will strengthen the company’s engagement with retail customers, institutional partners and businesses seeking digital asset services.
Luno also stated that increasing regulatory clarity is becoming more important as banks, fintech companies, payment providers, asset managers and corporate organisations continue exploring blockchain and cryptocurrency solutions.
The company said it plans to broaden its institutional offerings by providing digital asset infrastructure, stablecoin applications, treasury solutions and crypto-as-a-service products under the framework established by the SEC approval-in-principle for crypto firms.
The SEC approval-in-principle for crypto firms represents another phase in Nigeria’s evolving digital asset regulatory framework.
Two years ago, the Commission granted Approval-in-Principle to cryptocurrency exchanges Quidax and Busha, making them among the first legally recognised crypto trading platforms under the Accelerated Regulatory Incubation Programme.
At the same time, the SEC admitted four additional companies—including Trovotech Ltd, Wrapped CBDC Ltd, Dream City Capital and HousingExchange.NG Ltd—into its Regulatory Incubation Programme to test emerging technologies and business models under regulatory supervision.
The Commission has consistently maintained that approvals are granted on a case-by-case basis once applicants satisfy its admission requirements, adding that Approval-in-Principle serves as a precursor to full registration.
The SEC approval-in-principle for crypto firms forms part of the Commission’s broader effort to establish a structured and transparent regulatory environment for Nigeria’s digital asset industry.
The Accelerated Regulatory Incubation Programme functions as a regulatory sandbox, allowing virtual asset service providers and other investment service providers to operate under controlled conditions while the SEC evaluates their technology, governance structures and compliance capabilities.
This approach enables regulators to balance innovation with investor protection before granting full operational licences.
As one of Africa’s largest cryptocurrency markets, Nigeria has witnessed sustained growth in digital asset adoption despite years of regulatory uncertainty. The SEC approval-in-principle for crypto firms is expected to provide greater confidence for market participants while supporting responsible innovation within a regulated environment.
With seven additional firms now admitted into the sandbox, the SEC approval-in-principle for crypto firms signals the Commission’s continued commitment to building a more structured, transparent and accountable digital asset ecosystem for investors, businesses and financial institutions across Nigeria.
Primary source: Securities and Exchange Commission (SEC) Nigeria via Press Release
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