Nigeria Cracks Down on Crypto Platforms with New Capital Requirements

Nigeria's Securities and Exchange Commission (SEC) has proposed new rules that would require local and international cryptocurrency platforms operating in Nigeria to meet stringent capital requirements, effectively raising the bar for serving Nigerian users.

The proposal, published on August 20 and open for comments until September 3, aims to bring crypto businesses under its licensing perimeter when they operate in Nigeria or serve residents. The plan would impose a minimum capital requirement of ₦2 billion (approximately $4.7 million USD) for digital asset exchanges and custodians, with foreign-currency stablecoins facing an additional 120% backing requirement.

The regulator has also set reserve floors for stablecoin issuers, ranging from 100% to 150%, depending on the assets supporting their tokens. Custodians would need to keep at least 80% of client digital and virtual assets in cold storage, with hot and warm wallets limited to operational needs.

The proposal targets offshore exchanges and other platforms serving Nigerian users, effectively forcing them to find a local compliance path or face the consequences. The regulator's move aims to enhance investor protection and maintain financial stability in Nigeria.