SEC Grants Approval-in-Principle to Seven Fintech Firms for Regulatory Testing

The Securities and Exchange Commission (SEC) has awarded preliminary approval to seven fintech and digital asset companies to conduct product and service tests under its special regulatory program. The initiative allows the firms to operate under SEC supervision while the Commission promotes innovation, safeguards investors, and ensures the stability of Nigeria’s financial market.

The Commission disclosed this in a public notice, indicating that the approval forms part of its efforts to encourage responsible innovation capable of deepening Nigeria’s capital market without compromising regulatory standards. The firms admitted into the program are Bitbarter Technologies Limited, Luno Fintech Nigeria Limited, GetEquity Limited, Koinkoin Global Network Limited, Wrapped CBDC Ltd, Trovotech Ltd and Blockvault Custodian Ltd. According to the SEC, the Approval-in-Principle permits the firms to operate within the defined scope of the program, subject to conditions stipulated by the Commission.

The Commission, however, stressed that the approval does not amount to a final operating license. An Approval-in-Principle confirms that an entity has satisfied the Commission’s admission requirements for the Program. It is not a final license and remains conditional on the entity’s continued compliance with all applicable regulatory, operational, and supervisory obligations,” the Commission stated. The Accelerated Regulatory Incubation Programme (ARIP) is a controlled regulatory environment established by the SEC to accelerate the onboarding of digital asset and other investment service providers, including Virtual Asset Service Providers (VASPs) and tokenised product platforms.

The program enables the Commission to assess emerging business models and financial technologies under regulatory supervision before they are introduced to the investing public. SEC stated that the initiative is designed to ensure that appropriate safeguards are in place to protect investors while preserving the integrity of Nigeria’s capital market.

The latest admission expands the number of fintech and digital asset operators participating in the SEC’s regulatory framework for innovative financial products and services, as the Commission continues efforts to develop rules for emerging segments of the capital market. The SEC reiterated its commitment to supporting innovation that improves efficiency, transparency, financial inclusion and sustainable growth in the Nigerian capital market through initiatives such as the ARIP. It also advised members of the public to verify the regulatory status of individuals and organizations offering investment products or services through the Commission’s official channels before making investment decisions, noting that only authorized entities should be entrusted with investors’ funds.

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