Nigeria's cryptocurrency regulatory framework has expanded further after the Securities and Exchange Commission (SEC) admitted seven additional companies into its Accelerated Regulatory Incubation Programme (ARIP), marking another milestone in the government's efforts to bring the country's rapidly growing digital asset industry under formal regulatory supervision.

The Commission disclosed the development in a statement issued on Friday, announcing that the newly admitted firms have been granted Approval-in-Principle (AIP), allowing them to operate within the regulatory sandbox under defined conditions while remaining subject to ongoing regulatory oversight.

The newly admitted companies are Bitbarter Technologies Limited, Luno Fintech Nigeria Limited, GetEquity Limited, Koinkoin Global Network Limited, Wrapped CBDC Ltd, Trovotech Ltd, and Blockvault Custodian Ltd.

The latest approvals significantly expand the number of digital asset businesses operating within the SEC's supervised framework, following the admission of Quidax and Busha into the programme in August 2024. The move forms part of the Commission's broader strategy to create a structured regulatory environment for cryptocurrency exchanges, custodians, tokenization platforms and other virtual asset service providers operating in Nigeria.

The SEC said the Approval-in-Principle confirms that each company has successfully met the admission requirements for participation in the Accelerated Regulatory Incubation Programme, but clarified that the approval does not constitute a full operating license.

"An Approval-in-Principle confirms that an entity has satisfied the Commission's admission requirements for the Programme. Please note that 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.

According to the regulator, the admissions demonstrate its commitment to encouraging responsible innovation in Nigeria's capital market while maintaining investor protection, market integrity and regulatory oversight as the digital asset ecosystem continues to evolve.

The latest approvals also signal the SEC's determination to replace years of regulatory uncertainty with a clearer licensing pathway for cryptocurrency operators. Nigeria has emerged as one of Africa's largest cryptocurrency markets, driven by widespread retail adoption, cross-border payments, remittances and growing institutional interest, even as the sector has experienced periods of policy uncertainty.

One of the newly admitted firms, Luno, described the approval as a significant step in its long-term operations in Nigeria. In a separate statement, the cryptocurrency exchange said the Approval-in-Principle followed an extensive engagement process with the SEC and provides a clearer regulatory framework for its expansion plans.

Luno, which began operating in Nigeria in 2015, said the approval strengthens its ability to serve both retail and institutional customers as demand for regulated digital asset services continues to grow.

Luno Nigeria Chief Executive Officer, Ayotunde Alabi, described the development as an important validation of the company's regulatory approach.

"This is an important milestone for Luno Nigeria and a strong validation of our commitment to building responsibly in one of Africa's most important cryptocurrency markets," Alabi said.

He added that the regulatory approval would deepen the company's engagement with customers and institutional partners while supporting its expansion into business-to-business (B2B) services.

Luno said regulatory clarity has become important as banks, fintech companies, payment providers, asset managers, and corporate organizations continue to explore digital asset products and blockchain-based financial services. The company disclosed plans to broaden its institutional offerings, including digital asset infrastructure, stablecoin applications, treasury management solutions and crypto-as-a-service products designed for businesses seeking regulated exposure to digital assets.

The latest admissions build on regulatory milestones achieved over the past two years. In 2024, the SEC granted Approval-in-Principle to Quidax and Busha, making them the first cryptocurrency exchanges to receive formal recognition under the Accelerated Regulatory Incubation Programme.

At the same time, the Commission admitted four companies into its Regulatory Incubation (RI) Programme to test their business models and technology under controlled regulatory supervision. Those firms included Trovotech Ltd, Wrapped CBDC Ltd, Dream City Capital and HousingExchange.NG Ltd. With Trovotech Ltd and Wrapped CBDC Ltd now progressing into the Accelerated Regulatory Incubation Programme, the companies move a step closer to obtaining full regulatory authorisation.

The SEC has consistently maintained that additional approvals will be granted on a case-by-case basis as applicants satisfy its regulatory requirements. It has also emphasized that Approval-in-Principle serves only as a precursor to full registration and does not represent a final license to operate.

The Accelerated Regulatory Incubation Programme functions as the Commission's regulatory sandbox, enabling digital asset service providers and other investment technology firms to operate within a supervised environment while regulators assess their business models, governance structures, technology and compliance systems before issuing permanent licenses.

The framework is designed to help the SEC balance innovation with investor protection by allowing emerging financial technologies to develop under regulatory oversight rather than outside it.

The expansion of the programme comes as regulators worldwide continue developing comprehensive rules for digital assets, stablecoins, tokenized securities and other blockchain-based financial services. This comes amid growing institutional participation and increasing integration between traditional finance and digital asset markets.