Key Takeaways
- As per guidelines, digital asset exchanges will now be required to pay an application fee of ₦300,000 ($186),
- The SEC stated that the proposed changes aim to enhance clarity and integrate suggestions from industry stakeholders
Nigeria’s Securities and Exchange Commission (SEC) is proposing significant amendments to crypto regulations, aiming to raise registration fees for crypto exchanges substantially.
The proposed increase would see the registration fee spike from 30 million naira ($18,620) to 150 million naira ($93,000), marking a substantial shift in cost for those operating in the cryptocurrency sphere.
The SEC claims these changes are necessary for clarity and reflect input from industry stakeholders, particularly following engagements with the Central Bank of Nigeria (CBN). Originally introduced in May 2022, the rules governing crypto and digital asset service providers are now under review, with the SEC seeking to incorporate feedback and ensure alignment with evolving industry standards.
Under the proposed amendments, digital asset exchanges, offering platforms, and custodians would face higher financial requirements across the board. The application fee is set to increase from 100,000 naira ($62) to 300,000 naira ($186), while the processing fee would see a substantial surge from 300,000 naira ($186) to 1 million naira ($620). These changes indicate a significant financial commitment for entities involved in crypto-related activities in Nigeria.
In addition to fee adjustments, the SEC plans to rename the regulations 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 aims to provide greater clarity and transparency regarding the scope and application of the regulations, reflecting insights gained from ongoing discussions with industry stakeholders and regulatory bodies like the CBN.
While the proposed amendments aim to enhance regulatory clarity and oversight, they have not been without controversy. Critics have raised concerns, particularly regarding the requirement for a minimum paid-up capital of 500 million naira ($310,343). Some argue that such a high financial barrier could disproportionately advantage foreign firms over local players, potentially stifling domestic innovation and participation in the crypto space.
Despite criticisms, Nigeria has witnessed significant growth in crypto transactions, with a 9% year-over-year increase to $56.7 billion between July 2022 and June 2023.
