Nigeria Cracks Down on Crypto Firms with Proposed Local Presence and Capital Requirements

Nigeria's Securities and Exchange Commission (SEC) has proposed new rules that would bring cryptocurrency businesses under its licensing perimeter. The plan aims to regulate digital asset operations in Nigeria, serving Nigerian residents or targeting the country's investors and market through digital channels.

The proposal requires applicants to incorporate in Nigeria unless otherwise approved by the SEC, maintain a registered office in the country, and appoint a resident chief executive or managing director. Foreign stablecoin issuers would need to maintain a local representative and comply with reserve requirements prescribed by the SEC.

Digital asset exchanges and custodians would require at least ₦2 billion in capital, while other license classes would have lower minimum-capital levels. Stablecoin issuers would face tiered reserve floors, ranging from 100% to 200% backing depending on the token's characteristics.