Nigeria’s Securities and Exchange Commission (SEC) has put forward a series of amendments to the regulations governing crypto service providers, signaling potential changes to the landscape of digital asset trading in the country.
The proposed amendment includes a substantial increase in the registration fee for crypto exchanges, skyrocketing from 30 million naira ($18,620) to 150 million naira ($93,000). This move is part of the SEC’s efforts to provide clarity and incorporate feedback from industry stakeholders, particularly following engagements with the Central Bank of Nigeria.
Under the revised guidelines, digital asset exchanges, offering platforms, and custodians will face higher application fees, processing fees, and registration fees. For instance, the application fee is set to triple from 100,000 naira ($62) to 300,000 naira ($186), while the processing fee will see a fourfold increase from 300,000 naira ($186) to 1 million naira ($620).
One notable change in the proposed amendment involves the renaming of the rules and guidelines from “New Rules on Issuance, Offering Platforms and Custody of Digital Assets” to “Rules on Digital Assets Issuance, Offering Platforms, Exchange, and Custody.” This renaming is aimed at enhancing clarity and alignment with industry standards.
While the SEC attributes these amendments to input from industry stakeholders, some critics have raised concerns over the substantial increase in the paid-up capital requirement, set at 500 million naira ($310,343). They argue that this high fee could disproportionately benefit foreign firms and put local entities at a disadvantage.
Nigeria has emerged as a vibrant crypto economy in recent years, ranking among the top countries in terms of crypto adoption. However, the country has faced economic challenges, including record-high inflation, following the decision to allow the naira to trade freely in June 2023. Consumer inflation has risen for the 13th consecutive month, reaching nearly 30% in January 2024, according to data from the National Bureau of Statistics.
The proposed amendments by the SEC signal a significant development in Nigeria’s crypto regulatory landscape, potentially reshaping the environment for digital asset trading and investment in the country.
