Key takeaways:
- The Nigerian SEC has modified the regulations pertaining to digital asset issuance, offering platforms, exchange, and custody.
- As per the circular on the SEC’s website, VASPs can now participate in the ARIP during a dedicated window for the onboarding procedure.
The Nigerian Securities and Exchange Commission (SEC) has modified the regulations pertaining to digital asset issuance, offering platforms, exchange, and custody.
The SEC sent a formal notice to the public outlining its plans to alter these important rules. The amendment process aims to improve the regulatory framework by making it more thorough and adaptable to the intricacies of digital asset markets.
The Accelerated Regulatory Incubation Program (ARIP) is a unique compliance program that the SEC introduced as part of this regulatory revamp. This program allows virtual assets service providers (VASPs) to comply with the new regulations. It is specifically made for VASPs.
As per the circular on the SEC’s website, VASPs can now participate in the ARIP during a dedicated window for the onboarding procedure.
Through the SEC’s ePortal, one can access the onboarding procedure. VASPs are instructed to finish the application process within 30 days after the circular date, even if its goal is to increase compliance.
Along with a strong warning that non-compliant VASPs will face consequences, the SEC also threatened to take regulatory action against anyone who disobeyed the guidelines in the circular.
Following Emomotimi Agama’s appointment as the new Director-General of the SEC, the first Rules on Digital Asset Issuance, Offering Platforms, Exchange, and Custody were amended in May 2022.
In the meantime, to reposition the Nigerian market, it is imperative that the government and authorities in Nigeria appropriately regulate the virtual assets industry rather than imposing clampdowns, crackdowns, and shutdowns.
The SEC of Nigeria put out a proposal in March to modify the regulations governing platforms that provide crypto services. The proposal called for raising the registration price for crypto exchanges from 30 million naira ($18,620) to 150 million naira ($93,000).
In recent years, Nigeria has become one of the crypto economies with the quickest growth rate. In terms of the adoption of crypto, it was also the second-biggest economy in 2023. According to the volume of Google searches for “crypto” or “buy crypto,” Nigeria was dubbed the nation most interested in crypto in August 2022.