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 issued a circular through its ePortal, requiring VASPs to complete their application process within 30 days. This deadline is part of the Accelerated Regulatory Incubation Programme (ARIP) designed to facilitate the onboarding and compliance of VASPs with the revised regulations. The SEC has warned that non-compliant VASPs will face regulatory actions, emphasizing the importance of adhering to the new directives.

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

The SEC aims to strike a balance between accommodating the rapid growth of Nigeria's crypto market and implementing necessary oversight to ensure its secure and compliant development. The regulatory changes are part of a broader effort to enhance the regulatory framework and ensure better compliance within the digital asset sector.