SEC clears more virtual asset service providers under ARIP

Nigeria’s Securities and Exchange Commission (SEC) has approved a new group of Virtual Asset Service Providers (VASPs) to participate in its Accelerated Regulatory Incubation Programme (ARIP).

The latest entrants are GIGX Technologies and KuCoin Nigeria Limited, who will both receive Approval-in-Principle (AIP), which will allow them to operate within the SEC’s regulatory framework while working towards full registration.

The latest approvals allow additional cryptocurrency and digital asset companies to operate under the SEC’s regulatory supervision while working toward obtaining full licences.

This marks another step in the country’s efforts to establish a regulated digital asset ecosystem.

The move is expected to strengthen investor confidence and promote compliance across Nigeria’s rapidly expanding virtual asset market.

The ARIP was introduced by the SEC as a transitional framework designed to onboard existing virtual asset operators into a regulated environment.

Through the programme, eligible firms can continue offering services while demonstrating compliance with the Commission’s operational, governance, and risk management requirements before receiving permanent authorisation.

The latest approvals come as Nigeria continues to refine its regulatory approach to digital assets following the enactment of the Investments and Securities Act (ISA) 2025, which formally recognises digital assets as securities under certain conditions and expands the SEC’s oversight of the sector.

The legislation provides a stronger legal framework for regulating crypto-related businesses and protecting investors.

The approvals are a positive signal for Nigeria’s digital finance ecosystem. Bringing more operators under regulatory oversight is expected to improve transparency, reduce the activities of unregistered platforms, and encourage responsible innovation within the market.

For fintech startups and investors, regulatory clarity has long been one of the industry’s biggest challenges. By expanding participation in ARIP, the SEC is signalling its commitment to balancing innovation with consumer protection rather than restricting the growth of digital assets.

The development also aligns with Nigeria’s broader ambition to position itself as one of Africa’s leading digital finance hubs.

As more VASPs enter the regulated ecosystem, businesses are expected to gain greater access to institutional partnerships, while consumers may benefit from stronger safeguards and increased confidence in licensed operators.

Although participation in ARIP does not constitute a full operating licence, firms admitted into the programme remain subject to continuous regulatory oversight and must satisfy all applicable requirements before obtaining permanent authorisation from the commission.