Nigeria Proposes Tough New Regulations for Crypto Exchanges

The Securities and Exchange Commission (SEC) of Nigeria has proposed new regulations for the country's digital asset market. According to the draft Rules on Digital and Virtual Asset Operations, Custody and Markets, the SEC is seeking to establish prudential and operational standards for all firms providing virtual asset services in the country.

The proposal includes a N30 million registration fee and a N2 billion minimum capital requirement for Digital Asset Exchanges and Digital Asset Custodians. Additionally, applicants would also pay a N100,000 processing fee and a N300,000 application fee. Firms seeking to operate under the SEC's Accelerated Regulatory Incubation Programme (ARIP) would pay an additional N200,000 initial assessment fee and a N2 million ARIP application fee.

The framework also mandates that any entity seeking registration must be incorporated in Nigeria, maintain a registered office in the country, and have its CEO or managing director resident in Nigeria. Regulated entities would also be required to maintain a fidelity insurance bond covering at least 25 per cent of their minimum paid-up capital.