Cryptocurrencies

The Nigerian Securities and Exchange Commission (SEC) has amended its rules regarding…

The Nigerian Securities and Exchange Commission (SEC) has amended its rules on digital asset issuance, offering, trading and custody platforms.

In a notice to the public, the SEC explained its intention to update these important regulations. The amendment aims to strengthen the regulatory environment, making it more inclusive and responsive to the complexities of digital asset markets.

To modify

As part of this regulatory reform, the SEC introduced a special compliance program called the Accelerated Regulatory Incubation Program (ARIP). This program is designed specifically for Virtual Asset Service Providers (VASPs) and enables these entities to comply with new regulatory requirements.

Circular announcing the modification. Source: SEC

According to the circular published on the SEC website, the SEC has created a special window for the onboarding process, which will allow virtual asset service providers to participate in ARIP.

The setup process can be accessed through the SEC’s online portal. Although this application process is intended to improve compliance, VASP providers are requested to complete it no later than 30 days from the date of the circular.

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The SEC also issued a stern warning that it will take strict action against any non-compliant value service provider and impose regulatory measures against those who fail to comply with the guidance outlined in the circular .

The SEC goes so far

The amendment to the initial rules on platforms for issuing, offering, trading and custody of digital assets, published in May 2022, follows the appointment of a new director general, Imomutimi Agama, at the Securities and Exchange Commission.

At the same time, the urgent need for the Nigerian government and regulators to responsibly regulate the virtual assets sector instead of imposing crackdowns, crackdowns and lockdowns in order to reposition the Nigerian market has been strongly emphasized.

In March, Nigeria’s Securities and Exchange Commission proposed an amendment to rules governing platforms offering cryptocurrency services, suggesting an increase in registration fees for cryptocurrency exchanges from 30 million naira ($18,620) to 150 million of naira ($93,000).

Nigeria has become one of the fastest growing cryptocurrency economies in recent years. By 2023, it was also the second largest economy in terms of cryptocurrency adoption. As of August 2022, Nigeria was ranked as the most cryptocurrency-obsessed country in the world in terms of the number of Google searches for “crypto” or “buy crypto”.

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