On August 29, the Nigerian Securities and Exchange Commission (SEC) made a landmark announcement, granting “approval in principle” to two leading digital asset exchanges, Busha Digital Limited and Quidax Technologies Limited. This move marks a historic moment for the Nigerian crypto market, being the first approvals issued under the SEC’s newly introduced Accelerated Regulatory Incubation Program (ARIP). This initiative is set to play a pivotal role in nurturing growth within the local cryptocurrency sector while ensuring adherence to regulatory standards.
A Framework for Growth – The Accelerated Regulatory Incubation Program
The ARIP is designed to streamline the entry of digital asset exchanges into Nigeria’s burgeoning market. It allows selected firms to operate under provisional approval while awaiting the finalization of comprehensive digital asset regulations. This forward-thinking framework is intended to provide a safe and regulated environment for both investors and innovators. Alongside the approved exchanges, the SEC has also selected five additional firms for its Regulatory Incubation (RI) program, including notable platforms like Trovotech Ltd and Wrapped CBDC Ltd.
Embracing Distributed Ledger Technology
Central to the SEC’s strategy is the emphasis on distributed ledger technology (DLT). This technology is fundamental to the operation of many cryptocurrencies, providing a foundation for secure and transparent transactions. The SEC has highlighted that the outcomes of the preliminary tests conducted under the ARIP and RI programs will significantly influence future regulatory policies. This proactive approach aims to harmonize innovation with investor protection, setting clear guidelines for participants in the evolving digital finance landscape.
Rigorous Review and Investor Guidance
The SEC is meticulously assessing additional digital asset exchange applications, with plans to extend similar approvals to entities that meet regulatory compliance standards. The commission has also issued a warning to the public, advising caution against unverified and unauthorized investment services in the cryptocurrency space. This guidance is crucial for maintaining market integrity and ensuring that both novice and experienced investors operate within a secure framework.
The SEC’s recent actions signal a broader commitment to legitimizing the cryptocurrency market in Nigeria. By establishing robust regulatory frameworks and fostering innovation through programs like ARIP, the SEC aims to create a transparent and secure trading environment. As the cryptocurrency ecosystem continues to expand, it is essential for all stakeholders, including regulators and investors, to engage with evolving policies and practices to ensure a sustainable market.
The Nigerian SEC’s recent approvals represent a significant milestone in the country’s cryptocurrency journey. By implementing strategic regulatory measures and promoting the use of cutting-edge technologies, the commission is laying the groundwork for a more structured and transparent market. With these advancements, the future of cryptocurrency in Nigeria looks bright, characterized by regulatory clarity and increased participation, setting the stage for a more secure and dynamic digital asset landscape.
BeInCrypto sat down with members of the LBank team to analyze the possible resurgence of the meme coin market as a leading crypto narrative and what their fusion with artificial intelligence (AI) can have on their reach.
LBank also discussed the impact of the four-month-old Markets in Crypto-Assets (MiCA) regulation on its operations across Europe. They described a fundamental change in investor confidence in light of greater regulatory clarity and simplified accessibility.
Have Meme Coin Highs Given Way to Devastating Lows?
In recent years, the meme coin market has largely been characterized by overwhelming highs and devastating lows. The first few months of 2025 have further confirmed the volatile nature of these tokens, to the point that a vocal part of the crypto community believes that their recent lows have marked the end of the meme coin lifecycle.
These claims are not unfounded, especially now that the US President has become a meme coin player. When Trump launched his meme coin in mid-January, TRUMP reached a market capitalization of nearly $8.8 billion, a number never before seen by a meme coin launch.
When insider traders capitalized on the surge to sell off their holdings and retain millions of dollars in gains, retail investors bore the brunt of the massive sell-off, suffering hundreds of thousands of dollars in losses.
“The decline in meme coin market cap since January can be attributed to a combination of market dynamics and sentiment shifts. A key driver was the rapid rise and subsequent crash of the TRUMP token, which drew significant market capital due to its viral appeal but collapsed sharply, eroding investor confidence and triggering a broader risk-off sentiment,” Eric He, Community Angel Officer and Risk Control Adviser at LBank told BeInCrypto.
After similar experiences with the MELANIA token and the LIBRA launch, some of these retail investors realized that meme coins —as unregulated and unpredictable as they are— may not be the best investments.
Is the Meme Coin Frenzy Coming to a Halt?
Given the devastating effects that these episodes have had on the meme coin market, trading has reduced significantly. The crypto community seems to have become saturated with news of pump-and-dump schemes and rug pulls, likely contributing to a halt in the meme coin frenzy.
The total meme coin market capitalization has been free-falling since January’s peak following the presidential token launches. Now, its levels resemble those of September 2024. The greater economic downturn that traditional and crypto markets experienced over the past several weeks has only worsened prospects.
Yet, despite this downward pressure, the market still experiences a high level of activity. It has a $14.5 billion trading volume and a $57 billion market capitalization.
Total meme coin market capitalization. Source: CoinGecko.
According to the LBank team, the meme coin industry is due for a revival.
LBank’s Belief in the Revival of the Meme Coin Market
Though the decline in meme coin performance has been significant, the LBank team expressed that these circumstances are far from unexpected. Meme coins are inherently tied to community support and social momentum.
The sustained trading volumes and large market capitalization serve as tangible indicators that, even in a downturn, the market is seeing active community engagement and liquidity. Investors still see value in the tokens’ cultural and speculative appeal.
“We see it as a healthy market correction rather than a fundamental shift. Meme coins have always been volatile, but the fact that trading volumes remain high shows continued interest. What’s happening now is not the end of the trend—it’s just a recalibration before the next wave,” Mario Iemma, Head of Spanish Markets at LBank, told BeInCrypto.
In fact, Iemma believes that meme coins will not be dying out anytime soon.
AI agents represented the first significant shift in the evolution of the cryptocurrency industry. These autonomous systems proved that they could make decisions and perform tasks independently. This technology enhances intelligence, adaptability, and fairness in financial mechanisms.
Now, developers have unlocked artificial intelligence’s potential on tokens. Systems like Grok have already made news by using AI to automatically and independently design and launch tokens.
However, with a nascent technology like AI, the LBank team emphasized the need for responsible and thorough deployment for the long-lasting success of AI-generated tokens. This success hinges on two particular factors: accessibility and security.
Security and Accessibility Challenges for AI-Generated Tokens
The concept of security is frequently associated with any emerging technology. Artificial intelligence is no exception, especially in a particularly unregulated industry like crypto.
According to He, AI-generated token projects’ degree of security and transparency will determine their success.
Iemma agreed, adding that if AI-generative tokens become widely accessible, this development will also require additional layers of oversight.
“That same accessibility demands better filters, vetting, and AI-based security audits—areas where exchanges like LBank are already investing resources,” he said.
While reflecting on the security risks associated with artificial intelligence and the breaches in consumer trust that meme coins have had on the crypto community, the LBank team also emphasized the need for greater regulation in the industry.
The development of cryptocurrency regulations varies significantly across the globe. Notably, the European Union implemented comprehensive rules almost five months ago, while key markets such as the United States are still establishing adequate frameworks.
MiCA’s Effect on the European Crypto Market
Last December, with the implementation of the Markets in Crypto-Assets (MiCA) regulation, the European Union became the first jurisdiction to establish a comprehensive and unified regulatory framework for crypto-assets across all its member states, marking a significant milestone.
According to the LBank team, MiCA gives users and institutions a trustworthy framework. This development has proven critical for industry growth across the region.
“MiCA has forced firms to become more transparent and compliant, which is a good thing for long-term trust. We’ve seen exchanges accelerate their legal and operational upgrades. For users, it creates a safer, more predictable environment,” Iemma said, adding, “With clearer rules, banks and investment firms are more willing to explore crypto partnerships, custody solutions, and even tokenized assets. Regulation reduces reputational risk, and MiCA is helping bridge that gap.”
However, this experience can be largely attributed to established firms in the industry and investors with access to substantial resources. Other players, however, have struggled to gather the requirements to apply for a MiCA license.
Future Accommodation for Smaller Crypto Businesses
In discussing the impact of MiCA since its enactment last December, He highlighted how different industry players have responded to the landmark regulation. He noted that startups struggle the most to obtain an operational license.
When evaluating the cost-effectiveness of an operational license, He’s conclusions make sense.
MiCA is an expensive regulation. It mandates minimum capital requirements based on the crypto services offered. These requirements range from €50,000 for advisory and order-related services to €125,000 for exchange and trading platforms and up to €150,000 for custody services. Businesses must maintain this capital as a financial safeguard.
Beyond minimum capital requirements, companies must factor in government and legal fees, local presence costs, bank setups, and ongoing operational costs. But for prominent exchanges like LBank, the benefits outweigh the costs.
Future MiCA updates could address the high compliance costs for smaller businesses. Meanwhile, other regions developing their crypto regulations should consider this aspect to avoid creating similar barriers.
President Trump is again urging lower interest rates after bullish US employment data. Some analysts are hopeful that new rate cuts will generate positive momentum for Bitcoin.
However, there are no signs that Powell will change his mind. If anything, it’s even less likely. Tariffs could cause unprecedented chaos, and the economy doesn’t need rate cuts to survive right now.
Total nonfarm payroll employment increased by 177,000, far outperforming expectations, while unemployment remained steady and wages went up. This prompted President Trump to ask once again for cuts to the interest rate:
Gasoline just broke $1.98 a Gallon, lowest in years, groceries (and eggs!) down, energy down, mortgage rates down, employment strong, and much more good news, as Billions of Dollars pour in from Tariffs. Just like I said, and we’re only in a TRANSITION STAGE, just getting…
— Donald J. Trump Posts From His Truth Social (@TrumpDailyPosts) May 2, 2025
President Trump has repeatedly asked Federal Reserve Chair Jerome Powell to cut interest rates. The crypto industry has also heavily advocated for such a move, which would encourage investment in risk-on assets.
Powell’s position has been very consistent. Tariffs could severely damage the economy, and the Federal Reserve needs to keep its powder dry to stave off future collapse. If it cut rates after bullish news, the Fed would have one less potential tool in the event of a real crisis.
To put it bluntly, there is a very low chance that Trump will get his desired rate cuts soon. Justin Wolfers, an economist at the University of Michigan, explained why the bullish report actually makes rate cuts less likely:
“I’m almost certain that the Fed remains on hold at its next meeting. The real economy (so far) is strong enough to not warrant a rate cut. And the big questions are all just over the horizon. Powell has been clear: He doesn’t want to guess what’s over that horizon, he wants to wait & see. The report is absolutely legit. White House interpretations are a different issue,” he said.
