By The Securities and Exchange Commission (SEC) on Thursday granted “Approval-in-Principle” for two Digital Assets Exchanges to commence operation under its Accelerated Regulatory Incubation Programme (ARIP).
The commission said the move would deepen the capital market while guaranteeing the protection of investors.
Five firms were also admitted to test their models and technology under the SEC’s Regulatory Incubation (RI) Programme.
SEC introduced the ARIP to on-board firms which had commenced operations before the release of the Rules on Virtual Asset Service Providers in May 2022.
Conversely, the RI Programme was created to assess the business models of Digital Assets firms and test innovative products, services and technology in a real-time market environment under close supervision by the SEC.
“Specifically, the current cohort of the ARIP and the RI Programme is characterised by the increased use of distributed ledger technology (DLT) in creating and trading crypto assets,
“The outcome of the process would inform further policy development in this space. Tests would be conducted on a short-term and small-scale basis and the SEC would continue to work with the participating firms to agree on testing parameters as well as robust consumer safeguards.
“The referenced Approvals-in-Principle are a precursor to the grant of full registration by the SEC and are meant to ensure that appropriate protection and transparency are in place concerning each product or service,” the statement read.
SEC said ARIP firms include Busha Digital Limited, Quidax Technologies Limited, Trovotech Ltd, Wrapped CBDC Ltd, HousingExchange Ltd, Dream City Capital, and Blockvault Custodian Digital Asset Limited.
“It is noteworthy that the above firms are not the only entities that have applied to ARIP and the RI Program. Other applications received are being assessed and would be granted Approval-in-Principle on a case-by-case basis as they meet all SEC requirements,” it said.
