Nigeria SEC Proposes ₦2 Billion Floor for Crypto Companies

Nigeria's Securities and Exchange Commission (SEC) has proposed a regulation that could have far-reaching implications for crypto companies operating in or targeting the country. The proposal, published on August 20, aims to bring these businesses within its licensing perimeter when they serve Nigerian residents or target services at the local market.

The measure is open for public consultation until September 3 and may reach platforms based abroad if they provide services to Nigerians or target investors in the country through digital channels. The proposed rules require crypto companies to register, obtain approval, or receive authorization from the SEC.

Key requirements include incorporating in Nigeria, maintaining a locally registered office, and appointing a resident chief executive, managing director, or principal officer. Capital requirements vary depending on the type of business:

The highest floor for Digital Asset Exchanges and Custodians is ₦2 billion, with an additional registration fee of ₦30 million per class. Other platforms have lower minimum capital requirements: ₦500 million for Digital Asset Platforms, Digital Asset Offering Platforms, and Real-World Asset Tokenization Platforms.

The VASP category has a minimum capital requirement of ₦200 million and a registration fee of ₦15 million. The proposal also includes additional obligations, such as fidelity insurance covering at least 25% of the required paid-up minimum capital.