The Nigerian Securities and Exchange Commission (SEC) has amended its rules on Digital Asset Issuance, Offering Platforms, Exchange and Custody.
In an official notice to the public, the SEC outlined its plans to update these critical regulations. The amendment process is designed to enhance the regulatory environment, making it more comprehensive and responsive to the complexities of digital asset markets.
The amendment
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.
According to the circular on the SEC’s website, it has set up a special window for the onboarding process, that will allow VASPs to participate in the ARIP.
The onboarding process is accessible through the SEC ePortal. While this application process is intended to improve compliance, VASPs are directed to complete it no later than 30 days from the circular date.
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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.
SEC’s moves so far
The amendment of the initial Rules on Digital Assets Issuance, Offering Platforms, Exchange and Custody, issued in May 2022, follows the appointment of a new Director-General, Emomotimi Agama, at the SEC.
Meanwhile, the urgent need for the Nigerian government and regulators to responsibly regulate the virtual assets industry rather than enforcing clampdowns, crackdowns, and shutdowns has been strongly emphasized in order to reposition the Nigerian market.
In March, Nigeria’s SEC proposed an amendment to the rules guiding platforms offering crypto services, suggesting a hike in the registration fee for crypto exchanges from 30 million naira ($18,620) to 150 million naira ($93,000).
Nigeria has emerged as one of the fastest-growing crypto economies in the past few years. In 2023, it was also the second-biggest economy in terms of crypto adoption. In August 2022, Nigeria was named the most crypto-obsessed country in the world by the number of Google searches for “cryptocurrency” or “buy crypto.”
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