Nigeria’s Securities and Exchange Commission (SEC) has proposed changes to regulations governing platforms offering cryptocurrency services, including a significant increase in the registration fee for crypto exchanges from 30 million naira ($18,620) to 150 million naira ($93,000).
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The SEC stated that these proposed amendments aim to provide clarity and integrate feedback from industry stakeholders, particularly following discussions with the Central Bank of Nigeria (CBN). Initially introduced in May 2022, the SEC’s rules and guidelines for all crypto and digital asset service providers are now undergoing amendments as of Friday, March 15, 2024.
As per the updated guidelines, digital asset exchanges, offering platforms, and custodians will be required to pay an application fee of 300,000 naira ($186), up from the previous 100,000 naira ($62).
Read Also: Nigerian Government Debunks Reports of $10B Fine for Binance.
The processing fee has also been significantly increased from 300,000 naira ($186) to 1 million naira ($620).The registration fee now stands at 150 Million Naira ($93,102) from 30 million naira ($18,620)
Another proposed modification involves renaming the rules and guidelines from “New Rules on Issuance, Offering Platforms, and Custody of Digital Assets” to “Rules on Digital Assets Issuance, Offering Platforms, Exchange, and Custody.”
The SEC has indicated that these amendments are intended to improve clarity and integrate feedback from industry stakeholders. Furthermore, they are said to reflect insights gleaned from recent discussions with the Central Bank of Nigeria.
While the SEC attributes the proposed changes to input from industry stakeholders, criticism has emerged regarding the 500 million naira ($310,343) paid-up capital requirement. Critics argue that this high fee would predominantly benefit foreign firms and put local entities at a disadvantage.
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Tony Chimdiuto