The Nigerian Securities and Exchange Commission (SEC) has modified its regulations regarding Digital Asset Issuance, Offering Platforms, Exchange, and Custody.
The SEC disclosed its intentions to revise these indispensable regulations in an official notification to the public. The amendment process aims to improve the regulatory environment by ensuring it is more comprehensive and adaptable to the intricacies of digital asset markets.
About the Modification
During this regulatory overhaul, the SEC implemented the Accelerated Regulatory Incubation Programme (ARIP) as a compliance initiative. This program is specifically tailored for Virtual Assets Service Providers (VASPs) and allows these organizations to comply with the new regulatory requirements.
The SEC has established a window for the onboarding procedure on its website, enabling VASPs to participate in the ARIP.
The enrollment process is accessible through the SEC ePortal. Although this application procedure aims to enhance compliance, VASPs must complete it within 30 days of the circular date.
The SEC also warned that it will take regulatory action against any non-compliant VASPs that fail to comply with the directives enumerated in the circular.
The appointment of a new Director-General, Emomotimi Agama, at the SEC in May 2022 resulted in the amendment of the initial Rules on Digital Assets Issuance, Offering Platforms, Exchange, and Custody.
In the interim, the Nigerian government and regulators have been strongly urged to regulate the virtual assets industry responsibly rather than enforcing clampdowns, crackdowns, and shutdowns to reposition the Nigerian market.
Nigeria’s Securities and Exchange Commission (SEC) proposed an amendment to the regulations that govern platforms that provide cryptocurrency services in March. The proposed amendment would increase the registration charge for crypto exchanges from 30 million naira ($18,620) to 150 million naira ($93,000).
Nigeria has become one of the fastest-growing crypto economies in recent years. Additionally, it was the second-largest economy in terms of cryptocurrency adoption in 2023. The number of Google searches for “cryptocurrency” or “buy crypto” in August 2022 ranked Nigeria as the most crypto-obsessed country globally.
