Nigeria’s Regulatory Push: New Entrants Join SEC Crypto Sandbox

Nigeria’s Securities and Exchange Commission (SEC) has welcomed three additional virtual asset service providers into its Accelerated Regulatory Incubation Programme (ARIP), bringing the total to 12 firms since July. The latest approvals include Pisi Payment Solutions (parent company of YDPay), BC Access (the legal entity behind Blockchain Africa, a subsidiary of global exchange Blockchain), and Yellow Card—a stablecoin infrastructure startup.

The admissions grant these companies Approval-in-Principle (AIP) status, allowing them to operate within the sandbox’s defined scope under ongoing regulatory supervision. This expansion follows July’s initial cohort of nine firms, including investment platform GetEquity and cryptocurrency exchanges KuCoin Nigeria and Luno.

A Balanced Approach to Digital Asset Regulation

The SEC’s move signals a renewed focus on formalizing oversight within the crypto sector while fostering innovation—a strategy that balances investor protection with enabling new technologies. The ARIP programme allows regulators to evaluate digital asset businesses in a controlled environment before broader market access.

Since launching in June 2024, the sandbox has admitted companies like Busha and Quidax, which received initial approvals expected to lead to full licenses after a one-year incubation period—though this transition remains unconfirmed for either firm.

Implications for Nigeria’s Digital Asset Market

This expansion occurs as Nigeria maintains its position as one of Africa’s largest cryptocurrency markets by adoption. The SEC’s shift toward licensing and supervision represents a move beyond previous regulatory uncertainty, potentially creating greater clarity for startups, investors, and foreign firms seeking access to this significant market.

“Nigeria is one of Africa’s most important digital asset markets,” noted Owen Odia, general manager for Africa at Blockchain. “Participating in the SEC’s ARIP allows us to work directly with regulators in a controlled environment while bringing our global experience to benefit Nigerian consumers.”

The SEC has also imposed minimum capital requirements on digital asset companies—with exchanges and custodians needing to maintain up to ₦2 billion ($1.5 million) in capital—demonstrating a commitment to robust regulatory standards.