Luno Nigeria becomes first global crypto exchange to join SEC’s regulatory incubation program

Luno Nigeria just became the first global crypto exchange to receive Approval-in-Principle from Nigeria’s Securities and Exchange Commission for admission into its Accelerated Regulatory Incubation Programme. The approval, granted on July 2, positions the exchange to operate under a supervised framework while the country’s broader digital asset regulations take shape.

What the ARIP actually is

The SEC launched ARIP back in June 2024 to create an interim framework for Virtual Asset Service Providers and Digital Investment Service Providers while permanent rules are still being written. Crypto companies get to operate legally, but under the SEC’s watchful eye and with specific compliance requirements they need to meet.

Luno wasn’t the only firm to get the green light. The SEC also granted AIP to six other entities in the same batch, bringing the total number of firms in the programme to seven. But Luno’s distinction as the first global exchange to clear this hurdle is what makes the announcement significant for international observers.

Luno CEO Ayotunde Alabi framed the approval as validation of the company’s compliance-first approach. He described it as a major milestone for responsible growth in Africa’s crypto market, a characterization that tracks with how Luno has historically positioned itself in markets like South Africa and Malaysia where it also operates.

Why Nigeria matters for crypto

The Central Bank of Nigeria imposed restrictions on banks facilitating crypto transactions in early 2021, pushing much of the activity to peer-to-peer platforms and gray markets. The SEC’s creation of ARIP in 2024 signaled a different philosophy: rather than pushing crypto underground, bring it into a framework where it can be monitored.

Luno’s existing footprint across multiple countries gives it operational credibility that purely local startups might lack. The company has already been expanding its services in Nigeria ahead of this approval, and the ARIP admission clears the path for even broader offerings.

What Luno plans to offer

The approval opens the door for Luno to roll out products that go well beyond basic spot trading in Nigeria. The company is reportedly looking at staking services, tokenized stocks, and derivatives trading as part of its expanded product roadmap. No specific digital assets have been named for these expanded offerings yet.

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