Reported by: Oahimire Omone Precious | Edited by: Oravbiere Osayomore Promise.
After nearly two years of regulatory silence, the Securities and Exchange Commission has thrown open the doors of its crypto sandbox, granting Approval-in-Principle to seven digital asset firms in a move that signals a new phase in Nigeria's cautious embrace of the cryptocurrency industry. The seven companies—Bitbarter Technologies Limited, Luno Fintech Nigeria Limited, GetEquity Limited, Koinkoin Global Network Limited, Wrapped CBDC Ltd, Trovotech Ltd, and Blockvault Custodian Ltd—have been admitted into the Commission's Accelerated Regulatory Incubation Programme (ARIP), allowing them to operate within a defined scope under regulatory supervision.
The SEC's decision, announced on Friday, July 3, 2026, marks the first new cohort admitted into the programme since August 2024, when only two crypto exchanges, Quidax and Busha, received similar approvals. The admission of seven firms, including three that are transitioning from the Commission's Regulatory Incubation (RI) track, signals a reopening of the pipeline after a prolonged freeze that coincided with the government's tightening of the regulatory framework for digital assets.
The SEC was careful to emphasise that the Approval-in-Principle is not a final 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," the Commission stated.
The regulatory sandbox allows emerging financial technology firms to test products and services within a controlled environment before receiving full authorisation. The SEC said the latest admissions reflect its commitment to promoting responsible innovation while protecting investors and preserving market integrity. The Commission reiterated that additional approvals will continue to be granted on a case-by-case basis as applicants satisfy the programme's requirements.
One of the approved companies, Luno, described the approval as a significant milestone in its Nigerian operations. The company, which began operations in Nigeria in 2015, said the approval came after an extensive engagement process with the SEC and provides greater regulatory certainty as it expands its services in the country.
Luno Nigeria Chief Executive Officer, Ayotunde Alabi, said: "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." He added that the approval would strengthen the company's engagement with customers and institutional partners while supporting its expansion into business-to-business services.
Wrapped CBDC, another approved firm, runs cNGN, a naira-pegged stablecoin, while Trovotech and Blockvault Custodian are among the firms graduating from the regulatory incubation track to the accelerated programme.
The approvals come against the backdrop of a tightening regulatory environment. In January 2026, the SEC doubled the minimum capital requirements for digital asset exchanges and custodians to ₦2 billion, up from ₦500 million, with firms given until June 2027 to comply. Industry players had warned that the higher bar could squeeze out smaller, early-stage players. The admission of this new cohort, however, signals that the SEC is reopening its pipeline even as it tightens the rules firms must meet to stay in it.
Nigeria recognised digital assets as securities under the Investments and Securities Act 2025, placing the SEC in charge of their regulation. The Commission has maintained that the ARIP is a controlled regulatory environment designed to fast-track the onboarding of digital asset service providers while allowing the Commission to assess novel business models and technologies before they are offered to the investing public.
The SEC urged members of the public to verify the regulatory status of individuals or organisations promoting investment products or services through its official channels before committing funds. As Nigeria continues to formalise oversight of its fast-growing digital asset sector, the admission of the seven firms represents a significant step toward establishing a transparent and comprehensive regulatory framework for virtual asset service providers in Africa's largest economy.
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