Nigeria's Proposed Capital Floor Could Lock Out Global Crypto Platforms

Nigeria's Securities and Exchange Commission has proposed new rules that could restrict Nigerian users' access to global cryptocurrency platforms. The proposal, published on August 20, aims to bring crypto businesses under its licensing perimeter when they operate in Nigeria or serve Nigerian residents.

The measures would raise the cost of serving Nigerian users by combining local-presence requirements with capital, custody, and stablecoin-reserve tests. A digital-asset business operating in Nigeria or targeting residents would need SEC registration, approval, or authorization under the proposed rule text.

Applicants would generally have to incorporate in Nigeria, maintain a registered office in the country, and appoint a resident chief executive, managing director, or equivalent principal officer alongside resident-sponsored individuals. Foreign-entity registration or authorization through SEC frameworks would also be possible when conditions are met.