Nigeria’s Securities Exchange Commission (SEC) has put forward a proposal to amend the rules governing platforms offering crypto services. The amendment suggests a significant increase in the registration fee for crypto exchanges, from $18,620 (30 million naira) to $93,000 (150 million naira).
The SEC stated that the proposed amendments aim to provide clarity and integrate feedback from industry stakeholders, especially following engagements with the Central Bank of Nigeria (CBN). While the SEC initially issued rules and guidelines for crypto and digital asset service providers in May 2022, the recent proposal for amendment signifies a move towards refining and adapting regulations to current market dynamics.
Under the updated guidelines, digital asset exchanges (DAX), digital asset offering platforms (DAOP), and digital asset custodians (DAC) will face increased filing/application fees, processing fees, and registration fees. For instance, the filing/application fee would rise from $186 (300,000 naira) to $620 (1 million naira), reflecting a substantial increase. Similarly, the registration fee would spike by 400%, from $18,620 (30 million naira) to $93,102 (150 million naira).
The proposed amendments also involve 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.” These changes are aimed at enhancing clarity and aligning with recent discussions with regulatory bodies like the CBN.
While the SEC attributes these changes to feedback from industry stakeholders, there has been criticism, particularly regarding the steep paid-up capital requirement of $310,343 (500 million naira). Critics argue that such high fees could disproportionately benefit foreign firms while disadvantaging local entities.
Nigeria has emerged as one of the fastest-growing crypto economies globally, with significant adoption rates. However, the country has faced economic challenges, including inflation, following the abandonment of its currency peg in June 2023. The recent proposal by the SEC reflects ongoing efforts to regulate and navigate Nigeria’s evolving crypto landscape amidst broader economic fluctuations.
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