The Securities and Exchange Commission (SEC) clarified on Wednesday that its recent approval-in-principle for two cryptocurrency exchanges aims to provide Nigerian youths with an opportunity to engage in the capital market.

The News Agency of Nigeria (NAN) reported that on Thursday, SEC granted Busha Digital Ltd. and Quidax Technologies Ltd. approval-in-principle to begin operations under the Accelerated Regulatory Incubation Program (ARIP). Dr. Emomotimi Agama, Director General of SEC, issued a statement in Lagos explaining the decision. He noted that, in line with President Bola Tinubu’s focus on youth engagement, it was crucial to establish a framework that fosters youth participation, along with the broader Nigerian population, in the financial market.

“We must act in response to this global phenomenon, ensuring we are not left behind,” Agama remarked. “As a forward-looking institution, SEC is committed to keeping Nigeria among the countries that take necessary actions to adapt to these changes.”

He added that SEC is focusing on talent development to address the challenges posed by new asset classes like cryptocurrencies. “Many young Nigerians are actively involved in the crypto space, and it is not our role to exclude them. The president’s vision is to include them in the capital market,” Agama emphasized. To protect investors and promote market growth, SEC aims to regulate the space, ensuring that participants are shielded from potential harm. Agama also reassured that the commission is taking a cautious approach to ensure these crypto exchanges do not present risks to the national economy or individual investors.