The Nigerian Securities and Exchange Commission (SEC) has accelerated its efforts to bring digital asset companies under formal oversight, admitting seven financial technology firms—including five crypto companies—into its fast track regulatory sandbox program.
Companies admitted and scope of approval
The five crypto firms selected for the program are Bitbarter Technologies, Luno Fintech Nigeria, Koinkoin Global Network, Wrapped CBDC, and Blockvault Custodian. In addition, digital investment service providers GetEquity and Trovotech have also been included. The SEC, as the country’s principal capital markets regulator, is responsible for supervising these activities.
Each admitted company has received “in principle” approval. This preliminary status allows them to operate within a specific framework under SEC supervision, but it does not equate to a full operational license. In order to receive final authorization, all regulatory, operational, and compliance requirements must be fulfilled by the companies.
In principle approval does not grant a full license; the SEC reserves the right to terminate program participation at any phase if stipulated conditions are not met.
An intensive two-stage application process
Acceptance to the fast track program is not based on a simple direct application. Initially, each applicant undergoes a preliminary assessment. Only after this initial screening does the official application process begin, requiring companies to submit a sworn undertaking, a detailed operational plan, registration with the Nigerian Financial Intelligence Unit, and documentation outlining their corporate governance structure.
The SEC scrutinizes every application, retaining the discretion to defer or reject requests. Upon the conclusion of the sandbox period, the Commission may grant full registration, update oversight guidelines based on observations, or prevent the company from operating in Nigeria altogether.
The Commission may at the end of the program grant full registration, revise applicable rules, or terminate a company’s activities in the Nigerian market entirely.
Gap between regulated and unregulated activities remains
While the recent intake expands the tally of crypto companies under SEC supervision, there remains a significant divide between regulated and unregulated digital asset activities in Nigeria. Current estimates suggest more than 30 platforms—from exchanges to wallet services, remittance systems, and payment providers—are actively operating nationwide. Many of these firms are still waiting for licensing clarity or aim to join the official program.
This limited inclusion poses challenges for tax verification and compliance monitoring. The issue has become more pronounced since Nigerian crypto tax regulations came into force in January 2026. Although adding seven more firms to the regulatory pool marks progress, the majority of crypto activity in Nigeria still operates outside direct SEC oversight.
SEC aims to expand oversight capacity
As the country’s crypto sector expands exponentially, the Nigerian SEC is adopting further measures to strengthen market oversight. In a recent initiative aimed at combating fraud and bolstering investor protections, the agency collaborated with blockchain analytics firm Chainalysis to host an online seminar. Chainalysis specializes in transaction tracking and risk analysis across blockchain networks.
