Nigeria's Securities and Exchange Commission (SEC) is proposing amendments to the rules governing platforms offering crypto services, aiming to raise the registration fee for crypto exchanges. The proposed increase would see the fee surge from 30 million naira ($18,620) to 150 million naira ($93,000). Additionally, under the updated guidelines, digital asset exchanges, offering platforms, and custodians will face higher application fees, jumping from 100,000 naira ($62) to 300,000 naira ($186).

The SEC disclosed that these modifications are intended to provide clarity and integrate feedback from industry stakeholders, particularly following engagements with the Central Bank of Nigeria. Initially introduced in May 2022, the rules and guidelines for all crypto and digital asset service providers are set for an amendment as the SEC seeks to enhance transparency and alignment with industry consensus.

Moreover, as part of the proposed changes, the SEC plans to rename the regulations from "New Rules on Issuance, Offering Platforms and Custody of Digital Assets" to "Rules on Digital Assets Issuance, Offering Platforms, Exchange, and Custody." This adjustment, the SEC revealed, aims to streamline the regulatory framework and better reflect the evolving landscape of digital asset management in Nigeria.

While the SEC emphasizes that these revisions have been influenced by stakeholder feedback and engagement, critics have raised concerns about the impact of the proposed 500 million naira ($310,343) paid-up capital requirement. Some industry observers argue that this stringent financial prerequisite could favor foreign entities over local businesses, potentially creating a disadvantage for domestic players in the crypto space.

Nigeria has witnessed rapid growth in its crypto economy, establishing itself as one of the leading markets globally. In 2023, the country ranked second in terms of crypto adoption, underscoring its significance in the digital asset sector. However, regulatory scrutiny from the Nigerian government has recently intensified, leading to actions such as the suspension of naira services by major crypto exchanges operating in the region. This regulatory stance is part of broader efforts to address the challenges posed by the country's volatile currency and stabilize its economy.

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