MV Capital - SEC Nigeria Admits Three More Crypto Firms to Regulatory Sandbox, Total Hits 14

Nigeria’s securities regulator has admitted Pisi Payments, Blockchain.com and Yellow Card into its accelerated incubation programme for virtual asset providers

The Securities and Exchange Commission has granted Approval in Principle to three more Virtual Asset Service Providers under its Accelerated Regulatory Incubation Programme. The newly admitted entities are Pisi Payments Solution Limited, BC Access Nigeria Limited, which operates as Blockchain.com, and Yellow Card Financial Limited.

With these additions, the number of digital asset firms operating under the Commission’s structured oversight framework now stands at 14.

Approval in Principle and Operating Conditions

The three firms will receive Approval in Principle, enabling them to conduct business within the defined parameters of the programme and in accordance with conditions set by the Commission. Officials stressed that the Approval in Principle does not constitute a full operating licence. It confirms that the applicants have satisfied the entry requirements for the programme and remains dependent on ongoing adherence to regulatory, operational and supervisory standards.

This development means that these entities would receive the Commission’s Approval-in-Principle (AIP),permitting them to operate within the defined scope of the Programme and subject to conditions stipulated by the Commission.Securities and Exchange Commission

The Commission stated that the move supports its objective of encouraging responsible innovation in the capital market while safeguarding investors and upholding market integrity.

Blockchain.com Response

Blockchain.com described the clearance as an opportunity to engage directly with the regulator as it examines digital asset business models, tests protective measures and shapes a longer-term regulatory approach for the sector.

Nigeria is one of Africa’s most important digital asset markets and participating in the SEC’s ARIP is an important step forward in our long-term commitment to the country. The programme gives us the opportunity to work directly with the SEC in a controlled environment, bring our global experience to the Nigerian market and help support a framework that protects consumers while enabling responsible innovation. We appreciate the SEC’s proactive approach and look forward to contributing to a safe, transparent and well-regulated digital asset ecosystem.Owen Odia, General Manager for Africa, Blockchain

Growth of the Regulatory Sandbox

The latest admissions continue a steady expansion of the programme. In July the Commission brought seven additional companies into the framework, raising the total at that time to nine. Those firms were Bitbarter Technologies Limited, Luno Fintech Nigeria Limited, GetEquity Limited, Koinkoin Global Network Limited, Wrapped CBDC Ltd, Trovotech Ltd and Blockvault Custodian Ltd. Two further participants, GIGX Technologies and KuCoin Nigeria Limited, were subsequently admitted. The first recognitions under the arrangement were issued to Quidax and Busha in 2024.

Parallel to the sandbox expansion, authorities have issued Guidelines on the Taxation of Virtual Assets. These rules apply to companies, individual taxpayers, Virtual Asset Service Providers, peer-to-peer marketplace operators and other participants. Medium and large companies that generate profits from cryptocurrency and other virtual asset transactions are subject to a 30 percent income tax on those gains.

Purpose of the Accelerated Regulatory Incubation Programme

The ARIP is structured to speed the entry of digital asset and investment service providers, including Virtual Asset Service Providers and tokenised product platforms, into a controlled regulatory environment. It enables the Commission to examine new business models and technologies before they are made available to the investing public. The framework is intended to ensure that suitable protective measures are established to shield investors and maintain the integrity of the capital market while permitting innovative financial products to advance under supervision.