The regulations pertaining to digital asset issuance, offering platforms, exchange, and custody have been modified by the Nigerian Securities and Exchange Commission (SEC). The SEC sent a formal notice to the public outlining its plans to alter these important rules. The purpose of the amendment process is to improve the regulatory framework by making it more thorough and adaptable to the intricacies of digital asset markets.
As part of this regulatory overhaul, the SEC introduced a special compliance program called the Accelerated Regulatory Incubation Programme (ARIP). This program is specifically designed for Virtual Assets Service Providers (VASPs) and offers a path for these entities to align with the new regulatory requirements.
The SEC has established a unique timeframe for the onboarding procedure, which will enable VASPs to take part in the ARIP, according to the circular posted on its website. The SEC ePortal provides access to the onboarding procedure. Although the goal of this application process is to increase compliance, VASPs must do it within 30 days after the circular date.
The SEC also issued a stern warning that it will crack down on any non-compliant VASPs, enforcing regulatory actions against those that fail to adhere to the directives outlined in the circular.
The original Rules on Digital Assets Issuance, Offering Platforms, Exchange, and Custody were amended in May 2022 in response to the SEC’s nomination of Emomotimi Agama as its new Director-General. In the meantime, in order to reposition the Nigerian market, it is imperative that the government and authorities in Nigeria appropriately regulate the virtual assets industry as opposed to imposing clampdowns, crackdowns, and shutdowns. The SEC of Nigeria put out a proposal in March to modify the regulations governing platforms that provide cryptocurrency services. The proposal called for raising the registration price for cryptocurrency exchanges from 30 million naira ($18,620) to 150 million naira ($93,000).
In recent years, Nigeria has become one of the cryptocurrency economies with the quickest rate of growth. In terms of the adoption of cryptocurrencies, it was also the second-biggest economy in 2023.According to the volume of Google searches for “cryptocurrency” or “buy crypto,” Nigeria was dubbed the nation most interested with cryptocurrencies in August 2022.