The Nigerian Securities and Exchange Commission (SEC) has set a 30-day deadline for Virtual Asset Service Providers (VASPs) to update their applications in line with the country's newly amended regulations on digital asset issuance, trading platforms, exchanges, and custody services.

This move is part of a broader regulatory tightening in Nigeria's fast-growing cryptocurrency market. The SEC has revised its rules, including increasing the registration fee for crypto exchanges from 30 million naira to 150 million naira.

The updated application process, accessible through the SEC's ePortal, reflects the regulator's emphasis on enhancing compliance and oversight within the virtual asset industry. The SEC has warned that non-compliant VASPs will face regulatory actions, underscoring the importance of adhering to the new directives.

Alongside the application deadline, the SEC has also launched the Accelerated Regulatory Incubation Programme (ARIP) to facilitate the onboarding and compliance of VASPs with the revised regulations. This move aims to strike a balance between accommodating the rapid growth of Nigeria's crypto market and implementing robust oversight to ensure its secure and compliant development.

The regulatory overhaul includes increased fees and minimum paid-up capital requirements for VASPs, as well as a business separation requirement for existing Capital Market Operators (CMOs) seeking to register as VASPs. The Proposed Rules also provide for exemptions from registration of digital assets structured to be exclusively offered through a SEC-registered crowdfunding portal or intermediary.

Nigeria's approach to crypto regulation extends beyond its borders, influencing regulatory trends globally. As a key player in the crypto market, Nigeria's decisions can have far-reaching implications, making it imperative for regulators to adopt a balanced and informed approach to foster innovation while ensuring market stability and investor protection.