Bitrabo Editorial
The Nigerian Securities and Exchange Commission (SEC) has introduced a new program designed to expedite the registration process for virtual asset service providers (VASP). This initiative aims to adapt the existing regulatory framework to better suit the complex nature of the crypto ecosystem.
Deadline Set for VASP Registration by Nigerian SEC
In March, the Nigerian SEC made revisions to its Rules on Digital Assets Issuance, Offering Platforms, Exchange, and Custody. One significant update was the increase in registration fees for VASPs from 30 million naira to 150 million naira, a move that sparked discussions concerning its impact on business participation and financial stability for VASPs.
On June 21, the SEC released a new memo unveiling a specific amendment to the VASP registration rules, introducing the Accelerated Regulatory Incubation Program (ARIP). This 30-day program provides an exclusive window for current and potential VASPs in Nigeria to expedite the fulfillment of all requirements and ensure full compliance.
Failure to comply could lead to immediate prosecution by the SEC. This initiative comes after Emomotimi Agama assumed the role of director-general of the Nigerian SEC in April. Agama, known for his crypto-friendly stance, has faced challenges from stakeholders in the growing crypto industry in Sub-Saharan Africa.
Recently, the new director-general initiated a campaign against the presence of the Nigeria Naira on crypto exchanges, which was believed to contribute to the currency’s devaluation. Consequently, several exchanges, including KuCoin and Binance, delisted the Naira.
Nigeria’s Plan for Stricter Crypto Regulations
In December 2023, the Central Bank of Nigeria lifted a two-year ban on banks operating accounts for VASPs to adopt a regulated approach towards cryptocurrencies. Nonetheless, microfinance banks still face restrictions on facilitating crypto transactions. This, coupled with the fee increments and the ARIP program, indicates Nigeria’s intention to implement rigorous measures regarding the trading and use of cryptocurrency.
Nigeria, known as one of the world’s fastest-growing crypto hubs, has approximately 22 million active crypto owners, constituting 10.3% of the nation’s population.