By GINIKA OKOYE

The Securities and Exchange Commission (SEC) has cleared seven new fintech and digital asset firms for admission into its Accelerated Regulatory Incubation Programme (ARIP).

SEC also granted the firms an Approval-in-Principle (AIP) to operate within the programme’s regulatory sandbox as part of efforts to promote innovation while protecting investors.

The commission, in a public notice on Friday, said the move reinforced its commitment to fostering responsible innovation that deepens the country’s capital market without compromising market integrity.

It said ARIP is a controlled regulatory environment established by the commission to accelerate the onboarding of digital asset and other investment service providers, including Virtual Asset Service Providers (VASPs) and tokenised product platforms.

The seven firms set for admission into the programme are Bitbarter Technologies Ltd., Luno Fintech Nigeria Ltd., GetEquity Ltd., Koinkoin Global Network Ltd., Wrapped CBDC Ltd., Trovotech Ltd., and Blockvault Custodian Ltd.

According to the SEC, the AIP permits the firms to operate within the defined scope of the programme, subject to conditions stipulated by the Commission.

SEC said the approval was not a final operating licence but confirmed that each entity had satisfied the admission requirements for ARIP.

“An Approval-in-Principle confirms that an entity has satisfied the Commission’s admission requirements for the programme.

"It is not a final licence and remains conditional on the entity’s continued compliance with all applicable regulatory, operational, and supervisory obligations,” the commission said.

SEC said the initiative was designed to ensure that adequate safeguards were in place to protect investors while preserving the integrity of the country’s capital market.

The commission said the programme would enable it to evaluate emerging business models and financial technologies under regulatory supervision before they are offered to the investing public.

SEC reiterated its commitment to supporting innovations that enhanced efficiency, transparency, financial inclusion and sustainable growth in the capital market through initiatives such as ARIP.

The commission also urged members of the public to verify the regulatory status of individuals or organisations promoting investment products or services through its official channels before committing their funds. (NAN)