Nigeria’s SEC isn't the only agency putting a stop on crypto licenses. Busha and Quidax received the unanimous blessing at first, but now? It's "level three due diligence" time. Now, nobody likes delays and let’s not sugarcoat this delay. THIS IS HUGE THIS IS NOT A SMALL DEFEAT! It’s a masterclass on what NOT to do, and it’s your chance to help align your startup for long-term success. Consider it a public sector stress test, exposing the vulnerabilities you weren’t fully aware of!

Let's be blunt. Delays such as these aren’t merely the result of regulatory hurdles. They often point to deeper problems: fundamental flaws in how founders are approaching this space. I hear these same problems all over, and not just in Nigeria. We’ve watched these missteps unfold around the world, from the Philippines to Silicon Valley.

Due Diligence Deficiencies: The CBEX Echo

The SEC's added scrutiny screams one thing: trust deficit. And where does that come from? More frequently, it’s due to insufficient due diligence by the platforms – Megaphone and Spotify included. Think about the CBEX collapse. 100% monthly returns? Come on. That’s a flashing red light, not an investment opportunity. Investors rushed to throw money in, and now they are suffering.

Unfortunately, even the SEC’s warning to steer clear of such unlicensed platforms was not enough. Investors and founders both need to be a lot more judicious.

It goes beyond not wanting for-starters Ponzi schemes. It's about building a sustainable business.

  • Are you truly KYC/AML compliant?
  • Do you really understand the regulatory landscape?

Stop saying you value sustainability, ethics, and equity. Live them. See a lawyer. Twice.

I met a founder in Manila who recently launched a DeFi platform with little to no KYC. He believed he was being cutting edge, “democratizing finance.” It turns out, he was simply democratizing money laundering. His platform was taken down, and he’s now in deep legal peril. Learn from his mistake.

Transparency Troubles: Empty Promises Hurt All

CBEX promising 100% monthly returns is criminal, but it highlights a core problem: unrealistic promises and a lack of transparency. The world’s greatest UI is meaningless if you can’t prove that you’re creating something revolutionary. You need to show it. And it requires you to describe in clear and simple terms how your platform operates, what the dangers are, and how you’re addressing those dangers.

When you tell your grandma about the project, if she doesn’t get it, you still haven’t digested that idea deeply enough. If you’re not transparent, how can you expect your users to have faith in you?

Remember, the crypto space is still young. We're building the future of finance. Don't taint it with shady practices.

Too often, this leaves many founders believing that regulators are the enemy, an obstacle to be crushed. That's a huge mistake. The smartest founders think of regulators as allies.

  • Open-source your code (where possible).
  • Regularly audit your smart contracts.
  • Be upfront about fees and risks.
  • Communicate openly with your community.

I spoke to a founder in Singapore who proactively engaged with the Monetary Authority of Singapore (MAS) before launching his crypto exchange. He was very transparent about his business model, answered their concerns honestly and thoroughly, and collaborated with regulators to make sure he was within compliance. It was time and energy well spent, since it made a big difference later on. He finally earned his license, and even more important, he has established a coveted close working relationship with his new state regulator.

Regulatory Resistance: Proactive Beats Reactive

The Nigerian SEC delay is a significant obstacle, but it provides a unique opportunity to build relationships. Time to make henhouse lemonade out of this coup lemon!

The better you get to know each other, the more interesting the collaboration will become. Finally, keep in mind that regulators aren’t interested in killing off innovation—they’re interested in protecting consumers and preventing threats to the financial system.

Nigeria's got skin in the game. $20 million in funding this year, a huge pool of blockchain developers, and massive stablecoin adoption – these are not numbers to ignore! Circle launching CPN alongside partners such as Flutterwave and Yellow Card just goes to show the potential is there. But potential needs responsible development.

We can't afford another CBEX. What we need now are founders who are serious about building sustainable, transparent, and compliant businesses.

  • Reach out to the SEC.
  • Ask for clarification on their requirements.
  • Offer to participate in industry working groups.
  • Be a resource, not a problem.

This delay is a wake-up call. Don't ignore it. Learn from it. Build better.

Nigeria's got skin in the game. $20 million in funding this year, a huge pool of blockchain developers, and massive stablecoin adoption – these are not numbers to ignore! Circle launching CPN with partners like Flutterwave and Yellow Card shows the potential is there. But potential needs responsible development.

We can't afford another CBEX. We need founders who are committed to building sustainable, transparent, and compliant businesses.

This delay is a wake-up call. Don't ignore it. Learn from it. Build better.