Chaka has been granted registration and licensed by the SEC as a Digital Sub-Broker/Sub-Broker Serving Multiple Brokers Through a Digital Platform. Chaka's journey towards receiving a license can be traced back to March 2021, when it released a statement on its blog. The statement reads
"We are pleased to inform our stakeholders and the general public that Chaka has taken the necessary steps to register with the Securities & Exchange Commission of Nigeria (SEC) for a newly created license, as SEC continues to maintain its avowed intention to encourage innovation within the market space."
Chaka is the first recipient of this newly created license by the SEC. In April, the Securities and Exchange Commission prohibited fintechs like Chaka to offer customers passage to foreign exchange markets. This was revealed in a Circular titled "Proliferation of Unregistered Online Investment and Trading Platforms Facilitating Access to Trading in Securities Listed in Foreign Markets."
"...only foreign securities listed on any Exchange registered in Nigeria may be issued, sold or offered for sale or subscription to the Nigerian public. Accordingly, CMOs who work in concert with the referenced online platforms are hereby notified of the Commission’s position and advised to desist henceforth." An excerpt from the circular.
Speaking on its latest achievement, Chaka said, "We are committed to ensuring that our investors have the requisite safeguarding and security as any regulated financial institution, and receiving SEC's first fintech license demonstrates our sustained commitment to regulatory compliance."
"This license is an important step towards achieving our vision to level the playing field for African investors. And just as importantly, a defining moment for the future of digital investments in Nigeria and Africa at large," it added.
It would be interesting to see how things unfold for Chaka, given SEC's Regulation Incubation Program, which starts next month. From the look of things, Chaka seems to be safe given its acquisition of the fintech license.
Nigeria in focus
GDP: $448.12 billion compared to Uganda's $35.16 billion in 2019
Population: 200,963,599 compared to Uganda's 44,269,594 in 2019
GDP per capita: $2,229 compared to Uganda's $794 in 2019