Crypto exchange Yellow Card has announced plans to secure regulatory approval in Nigeria through the Securities and Exchange Commission’s (SEC) Accelerated Regulatory Incubation Programme (ARIP). The move follows its recent achievement in South Africa, where it obtained a Crypto Asset Service Provider (CASP) license.
Building on South Africa’s Experience
Oludimu noted that South Africa’s licensing process involved a rigorous application and an on-site inspection. This thorough approach, she said, has equipped the company to handle Nigeria’s regulatory demands effectively.
“The inspection in South Africa was comprehensive, reflecting the country’s strong regulatory framework,” Oludimu explained. “This experience has prepared us to meet the challenges of securing approval in Nigeria, where we continue engaging with the SEC under ARIP. Our commitment to operational transparency and compliance will guide us through the process.”
Nigeria’s Push Toward Crypto Regulation
Highlighting Nigeria’s strides in crypto regulation, Oludimu praised the SEC’s ARIP initiative for setting global benchmarks. She emphasized how the program creates a structured environment for crypto businesses while fostering user safety and financial compliance.
“The ARIP program is propelling Nigeria to the forefront of crypto regulation, marking a departure from earlier uncertainties. The clarity and progress in regulatory frameworks will benefit the country, businesses, and blockchain enthusiasts,” she added.
Funding and Expansion Plans
Yellow Card recently secured $33 million in Series C funding, enabling it to enhance its services and expand operations. Oludimu revealed that the company is advancing its stablecoin infrastructure, upgrading its B2B API and Widget, and scaling stablecoin solutions for liquidity management.
“This funding allows us to focus on financial inclusion, particularly in underbanked regions like Nigeria. By supporting stablecoin adoption, we aim to provide accessible payment solutions and empower users to hedge against inflation,” she said.
Partnership with PayPal and Xoom
Yellow Card has also partnered with PayPal and Xoom to improve cross-border payment accessibility across Africa. Through this collaboration, the company will utilize PayPal USD (PYUSD) and blockchain technology to streamline value transfers, making them faster and more cost-efficient.
Customers in Africa can now buy, sell, and transfer PYUSD on Yellow Card’s platform without needing a PayPal account. This initiative also unlocks new trading opportunities globally.
Regulatory Milestones in Nigeria
In August 2024, Nigeria’s SEC granted Approval-in-Principle to crypto exchanges Quidax and Busha, officially recognizing them as legal trading platforms under ARIP.
Additionally, four digital asset firms—Trovotech Ltd, Wrapped CBDC Ltd, Dream City Capital, and HousingExchange.NG Ltd—are testing their models under the SEC’s Regulatory Incubation (RI) Program. More applications are currently under review, with approvals to be granted as requirements are met.
Conclusion
Yellow Card’s expansion into Nigeria signifies its commitment to growing Africa’s digital economy by aligning with regulatory standards and enhancing access to crypto solutions for individuals and businesses.
