Luno just became Nigeria's newest sandbox resident

Nigeria's Securities and Exchange Commission (SEC) has cleared seven new fintech and digital asset firms for admission into its Accelerated Regulatory Incubation Programme (ARIP), granting each an Approval-in-Principle to operate within the programme's regulatory sandbox. Among them is @LunoGlobal, which describes itself as the only internationally backed crypto exchange to reach that status in the current cohort.

The full list of admitted firms includes Bitbarter Technologies Limited, Luno Fintech Nigeria Limited, GetEquity Limited, Koinkoin Global Network Limited, Wrapped CBDC Ltd, Trovotech Ltd, and Blockvault Custodian Ltd.

What the Approval Actually Means

The distinction between sandbox admission and a full operating licence matters. According to the SEC, an Approval-in-Principle confirms that a firm has satisfied the Commission's admission requirements, but it is not a final licence and remains conditional on continued compliance with all regulatory, operational, and supervisory obligations. In plain terms, the regulator can revoke access if a firm steps out of line.

ARIP was designed to allow digital asset providers to test their services in a controlled setting under SEC supervision, while Nigeria's broader regulatory framework catches up. The Investments and Securities Act 2025 formally empowers the SEC to register and regulate virtual and digital asset exchanges and other market venues.

A Cautionary Precedent

The new cohort joins a programme whose track record is uneven. Quidax, one of Nigeria's most recognised crypto exchanges and an existing ARIP participant, shut down its peer-to-peer trading service earlier this year after roughly five months, a retreat attributed to tightening regulatory pressure even from inside the sandbox. That outcome is a reminder that Approval-in-Principle status does not guarantee a clear runway.

The operating environment is also becoming more demanding. Nigeria's new tax framework gives authorities a mechanism to trace digital asset transactions back to individual taxpayers using national identification data, meaning ARIP firms now operate under both securities oversight and a more assertive tax regime simultaneously.

Nigeria remains one of the largest crypto markets on the continent by transaction volume, and its regulatory choices are being watched by other African regulators weighing similar frameworks. For Luno, gaining conditional entry is a meaningful step forward in formalising its presence in the country, though the path to a full licence remains open-ended.

Sources:
Tribune Online: SEC clears seven new fintech firms for ARIP
Tech Labari: Nigeria's Market Regulator Adds Seven Crypto and Fintech Firms to Its Watch List
Nairametrics: ISA 2025 and Nigeria's crypto securities framework