Nigeria Cracks Down on Crypto Industry with Stricter Compliance Rules

Nigeria's Securities and Exchange Commission (SEC) has issued a proposed regulatory framework to tighten oversight of the country's cryptocurrency industry. The draft rules aim to ensure that digital asset exchanges and custodians operating in Nigeria maintain a minimum capital of N2 billion ($1.41 million).

The proposed framework also requires crypto operators serving Nigerians to be locally incorporated, maintain a registered office, and have their top executive resident in the country. Regulated entities will need to pay a N30 million ($21,200) registration fee and maintain a fidelity insurance bond covering at least 25% of their minimum paid-up capital.

The SEC has previously highlighted the importance of regulating the market, citing that over 33% of Nigeria's population was engaged in digital assets. The commission has also emphasized the need to take the market seriously due to the rapid adoption and risks associated with it.