- The Securities and Exchange Commission (SEC) of Nigeria proposes amendments to cryptocurrency exchange regulations, including raising registration costs, aiming to enhance regulatory clarity and address industry feedback.
- On March 15, 2024, the Nigerian SEC unveiled proposed revisions to cryptocurrency exchange regulations initially introduced in May 2022, elevating application fees for digital asset platforms from 100,000 nairas ($62) to 300,000 nairas ($186), and processing fees from 300,000 nairas ($186) to 1 million nairas ($620).
- Despite Nigeria’s cryptocurrency economy soaring to become the world’s second-largest in 2023, the SEC’s proposal has faced criticism, raising concerns about its potential impact on local businesses and favoring international entities.
OUR TAKE
The Nigerian SEC’s proposal to increase registration fees for cryptocurrency exchanges is part of significant amendments aimed at enhancing regulatory clarity and addressing industry feedback. The move to raise registration costs underscores a concerted effort to reinforce regulatory oversight and ensure the reliability of the cryptocurrency market. By imposing higher fees, the SEC aims to create a financial barrier that could dissuade potential bad actors and bolster safeguards for investors.
–Sylvia Shen, BTW Reporter
The Securities and Exchange Commission (SEC) of Nigeria has suggested raising the registration cost for cryptocurrency exchanges from 30 million naira ($18,620) to 150 million naira ($93,000) to modify the regulations governing platforms that provide crypto services.
Nigerian SEC proposes revised regulations
The Securities and Exchange Commission (SEC) indicated that the proposed changes were intended to offer clarity and address feedback from various industry participants.
On Friday, March 15, 2024, the Nigerian SEC proposed amending the regulations that it had originally published in May 2022, which applied to all suppliers of services related to digital assets and cryptocurrencies.
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The application cost for digital asset exchanges, digital asset offering platforms, and digital asset custodians has been increased from 100,000 naira ($62) to 300,000 naira ($186) in accordance with the new criteria.
Additionally, the processing price increased to 1 million naira ($620) from 300,000 naira ($186). The registration cost has also increased significantly, from 30 million naira ($18,620) to 150 million naira ($93,102), a 400% increase.
These revisions, according to the SEC, are intended to improve clarity and take industry suggestions from stakeholders into account. They also consider new perspectives from recent talks with the Central Bank of Nigeria.
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Debate over new amendment
Some criticise the 500 million nairas ($310,343) paid-up capital requirement, arguing that it would harm local businesses while disproportionately benefiting international companies.
Nigeria’s cryptocurrency economy has grown at one of the quickest rates in the world. In 2023, it surged to become the world’s second-largest cryptocurrency economy.
