Luno Nigeria becomes first global crypto exchange admitted into SEC’s ARIP

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…Digital assets. Approval in Principle positions the cryptocurrency platform to operate within Nigeria’s evolving regulatory framework and expand institutional digital asset services.

Key points

• Luno Nigeria has received Approval in Principle from the Securities and Exchange Commission (SEC).
• The company becomes the first cryptocurrency exchange with a global footprint admitted into the SEC’s Accelerated Regulatory Incubation Programme (ARIP).
• The approval authorises Luno to operate within the programme subject to regulatory conditions and compliance requirements.
• Luno says the milestone will strengthen trust with customers and support its expansion into institutional and business-to-business (B2B) digital asset services.
• The development reflects Nigeria’s efforts to establish a structured regulatory framework for the digital asset industry.

Main Story

Luno Nigeria has become the first cryptocurrency exchange with a global presence to receive Approval in Principle from the Securities and Exchange Commission (SEC) through admission into the Commission’s Accelerated Regulatory Incubation Programme (ARIP).

The approval marks a significant milestone in the company’s regulatory journey and positions it to operate within Nigeria’s evolving digital asset regulatory framework, subject to the SEC’s ongoing compliance requirements and conditions.

According to the company, the approval follows an extensive engagement process with the Commission and underscores its commitment to supporting the growth of Nigeria’s digital asset ecosystem through a regulated operating environment.

Luno, which was founded in Africa in 2013, began operations in Nigeria in 2015 and has since established one of its largest markets in the country.

Admission into ARIP authorises the company to participate in the SEC’s regulatory incubation programme, designed to provide oversight for digital asset service providers while enabling regulators to assess emerging business models and technologies under controlled conditions.

Luno said the regulatory milestone would strengthen its ability to expand institutional and business-to-business (B2B) services by partnering with banks, fintech companies, payment providers, asset managers and corporate organisations seeking compliant digital asset solutions.

The company noted that demand for regulated digital asset infrastructure is increasing, particularly in areas such as stablecoin applications, treasury management, crypto-as-a-service offerings and secure access to digital assets.

The SEC introduced ARIP as a controlled regulatory framework to accelerate the onboarding of virtual asset service providers and other investment service platforms while ensuring investor protection and market integrity.

Luno’s admission into the second batch of the programme builds on the Commission’s digital asset licensing framework introduced in 2024 and is expected to enhance confidence among investors, regulators and institutional participants in Nigeria’s growing cryptocurrency market.

The Issues

Nigeria remains one of Africa’s largest cryptocurrency markets, but the sector has faced regulatory uncertainty over the years, creating challenges for operators seeking to provide compliant digital asset services.

The SEC’s Accelerated Regulatory Incubation Programme is intended to balance innovation with investor protection by allowing emerging digital asset businesses to operate under regulatory supervision before obtaining full operational licences.

Industry observers believe that greater regulatory clarity could encourage increased institutional participation, improve consumer confidence and support the development of Nigeria’s digital economy.

What’s Being Said

Chief Executive Officer of Luno Nigeria, Ayotunde Alabi, described the approval as a major milestone for the company.

According to him:

“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.”

He added that admission into ARIP provides a clearer regulatory pathway, strengthens trust with customers and partners, and creates a stronger foundation for the company’s next phase of growth, particularly in institutional and business-to-business digital asset services.

What’s Next

Luno Nigeria is expected to continue operating within the SEC’s Accelerated Regulatory Incubation Programme while complying with the Commission’s regulatory requirements.

The company also plans to deepen its engagement with banks, fintech firms, payment providers, asset managers and corporate institutions as demand grows for regulated digital asset products and services.

The SEC is expected to continue assessing participants in the programme as part of broader efforts to establish a transparent and sustainable regulatory environment for Nigeria’s digital asset industry.

Bottom Line

Luno Nigeria’s admission into the SEC’s Accelerated Regulatory Incubation Programme marks a significant step in the regulation of Nigeria’s cryptocurrency sector. As the first global cryptocurrency exchange to secure Approval in Principle under the initiative, the company is positioned to expand its regulated operations while supporting the country’s drive towards a more structured, transparent and investor-friendly digital asset ecosystem.