Expanding the Sandbox
Nigeria’s Securities and Exchange Commission (SEC) has admitted two additional virtual asset service providers (VASPs) into its Accelerated Regulatory Incubation Program (ARIP), following the recent entry of Luno Nigeria as the first global cryptocurrency platform to join the supervised framework.
The financial regulator announced July 2 that GIGX Technologies and Kucoin Nigeria Limited have been granted approval-in-principle (AIP). The approval allows the two entities to operate provisionally under the SEC’s supervision while working toward full registration.
The regulatory expansion comes just days after Luno Nigeria and six other entities secured their provisional clearance as part of the program’s second batch. For Luno, which entered the Nigerian market in 2015, the inclusion represents a major milestone for the initiative as its first participant with a global footprint.
Ayotunde Alabi, chief executive officer of Luno Nigeria, described the development as a strong validation of the company’s commitment to building responsibly.
“Admission into ARIP gives us a clearer regulatory pathway, strengthens trust with customers and partners, and provides a stronger foundation for the next phase of our growth, particularly as we expand our focus on institutional and B2B opportunities,” Alabi said.
Luno noted that the structured framework provides the clarity necessary to deploy institutional services like stablecoins and crypto-as-a-service platforms to local banks and asset managers.
The SEC’s incubation framework acts as a testing ground for digital asset businesses, building on a broader regulatory push initiated with virtual asset licensing guidelines. Rather than issuing standard operational licenses immediately, the regulator uses the trial period to monitor how companies manage customer funds, implement anti-money laundering controls and handle operational risks.
To qualify for the program, firms must satisfy strict corporate and financial benchmarks. Requirements include proof of satisfactory shareholders’ funds relative to their service category, maintaining a valid fidelity bond covering at least 25% of those funds, and operating a physical office inside Nigeria. Additionally, applicants must appoint a resident chief executive officer and show evidence of registration with the Nigerian Financial Intelligence Unit (NFIU).
The expansion brings the total number of digital asset firms recently admitted into the SEC’s regulatory testing phase to nine. In addition to Luno, Kucoin and GIGX, the approved entities include Bitbarter, Getequity, Koinkoin, Wrapped CBDC, Trovotech and Blockvault Custodian.
Commission officials noted that provisional approvals do not equate to full legalization or blanket authorization for all cryptocurrency platforms operating within Nigeria. The SEC continues to advise consumers to verify whether individual digital asset providers are recognized under the commission’s supervised framework before utilizing their platforms.
