Yellow Card, a leading cryptocurrency exchange, has announced that it is working to secure regulatory approval from Nigeria’s Securities and Exchange Commission (SEC). The company, which recently raised $33 million in Series C funding, has submitted an application for approval under the SEC’s Accelerated Regulatory Incubation Programme (ARIP) and is awaiting an approval in principle.
Lasbery Oludimu, the VP of Global Operations and MD of Yellow Card Nigeria, shared the news in an interview with Nairametrics. She highlighted the company’s successful experience in South Africa, where it obtained a Crypto Asset Service Provider (CASP) license. Oludimu emphasized that while the regulatory process in South Africa was rigorous, with on-site inspections and detailed evaluations, Yellow Card is well-prepared for similar challenges in Nigeria.
“The experience in South Africa has equipped us to navigate similar regulatory processes here in Nigeria,” Oludimu said, noting that Yellow Card’s commitment to operational transparency and compliance will aid its engagement with the SEC.
As Nigeria moves towards a more structured approach to crypto regulation, Oludimu commended the SEC’s progress through ARIP, which she believes is helping Nigeria establish itself as a leader in global regulatory standards. She stated that the program provides a clear framework for crypto businesses to operate within, ensuring a safer environment for users and promoting broader financial compliance.
“The regulatory landscape is evolving, and there is now clarity on which regulators to engage with in Nigeria. This progress will foster shared prosperity for the country, businesses, and the growing blockchain ecosystem,” Oludimu added.
The new funding secured through Series C will enable Yellow Card to accelerate its expansion plans and enhance its product offerings. Oludimu explained that the company will focus on upgrading its stablecoin infrastructure, improving its B2B API, and expanding its stablecoin rails to provide businesses with seamless liquidity management solutions.
“Financial inclusion is at the heart of our mission. This funding allows us to further support the adoption of stablecoins, particularly in underbanked regions like Nigeria, where we aim to provide accessible solutions for payments and inflation hedging,” Oludimu said.
Yellow Card has also partnered with PayPal and Xoom to improve cross-border payment solutions across Africa. By leveraging PayPal USD (PYUSD) and blockchain technology, the partnership aims to streamline value transfers, making them faster and more affordable. This collaboration also enables Yellow Card users to buy, sell, and transfer PYUSD on the platform without needing a PayPal account.
This move comes as Nigeria’s SEC continues its efforts to regulate the crypto space. In August 2024, the SEC granted Approval-in-Principle to two crypto exchanges, Quidax and Busha, recognizing them as legally approved trading platforms. The SEC is also working with other companies under its ARIP and Regulatory Incubation (RI) programs to test their models and technology.
As Yellow Card continues to expand and engage with Nigerian regulators, its efforts reflect a broader trend toward regulation and the growth of the cryptocurrency sector in Africa.
