The Securities Exchange Commission of Nigeria (SEC) is proposing amendments to regulations for cryptocurrency platforms, increasing the registration fee for exchanges from ₦30 million to ₦150 million to address industry feedback and align with the CBN.
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Initially issued in May, the SEC’s rules and guidelines for all crypto and digital asset service providers are undergoing revision. Among the proposed changes is the renaming of the rules from “New Rules on Issuance, Offering Platforms and Custody of Digital Assets” to “Rules on Digital Assets Issuance, Offering Platforms, Exchange, and Custody.”
However, the most significant amendment pertains to registration fees for crypto exchanges and other platforms offering digital services. Virtual Asset Service Providers (VASPs) are subject to new rules and fees, with digital asset exchanges (DAX), digital asset offering platforms (DAOP), and digital asset custodians (DAC) facing notable increases in filing/application fees and processing fees.
The filing/application fee is set to rise to ₦300,000 ($186) from ₦100,000, while the processing fee jumps from ₦300,000 to ₦1 million ($620). The registration fee sees the most drastic increase, surging by 400% from ₦30 million to ₦150 million.
The SEC’s proposed amendments to cryptocurrency regulations in Nigeria, including a significant increase in the paid-up capital requirement to ₦500 million, have sparked concerns among stakeholders. Local players worry this could disadvantage domestic firms in favor of foreign companies. Regulatory changes in Nigeria also involve higher licensing fees for IMTOs set by the CBN.
As the regulatory landscape evolves, stakeholders will closely monitor developments to gauge the impact on Nigeria’s burgeoning crypto industry and its ecosystem of service providers.
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