- For regulatory approval, the Nigerian SEC mandates that virtual asset service providers (VASPs) maintain a physical presence in Nigeria.
- Under the ARIP, VASPs, including cryptocurrency companies in Nigeria, must apply via the SEC’s ePortal within 30 days.
- Increased registration costs for cryptocurrency exchanges are among the proposed SEC adjustments.
In order to be eligible for regulatory approval, virtual asset service providers (VASPs) operating in Nigeria are required by the Nigerian Securities and Exchange Commission (SEC) to have a physical presence in the nation.
VASPs must function under the ARIP even though revisions to the regulations governing the issuance, platforms, exchanges, and custody of digital assets are still being considered. Prior to the complete adoption of the Digital Assets Regulations, the interim framework seeks to accelerate SEC registration procedures.
Proposed Regulatory Changes and SEC Amendments
The ARIP targets cryptocurrency companies operating in Nigeria, such as those that enable the trading, exchange, custody, and transfer of digital assets. The SEC will grant temporary clearance to qualified applicants, contingent on their submission of weekly and monthly trade reports, quarterly financial statements, and compliance audits.
The SEC, which is in charge of policing Nigeria’s capital market, intends to use ARIP to expedite the registration process for organizations wishing to operate within its purview.
The SEC had earlier in March 2024 suggested proposals that would have greatly increased the registration fees for cryptocurrency exchanges. The updated regulations also outline requirements for exemption from registration, including exclusive offerings made through crowdfunding portals or intermediaries that are registered with the SEC.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
