Nigeria’s Securities and Exchange Commission (SEC) has initiated a comprehensive regulatory overhaul, unveiling new governance measures aimed at tightening oversight of the country’s expanding digital assets sector. These updated guidelines seek to streamline procedures and strengthen regulatory actions in response to the increasingly intricate digital currency markets.

In an effort to regulate stakeholders more effectively, the SEC has introduced the Accelerated Regulatory Incubation Programme (ARIP). Specifically tailored for Virtual Assets Service Providers (VASPs), this compliance initiative ensures that companies promptly align with the latest regulatory updates.

The SEC’s digital portal features a ‘fast-track’ registration process under ARIP, requiring VASPs to apply within 30 days of the announcement. The new regulations carry a strict warning – companies failing to comply with the directives will face regulatory sanctions.

This regulatory overhaul follows the introduction of initial guidelines on digital assets in May 2022 and the appointment of Emomotimi Agama as the new director-general of the SEC. Concurrently, the SEC has proposed a fivefold increase in registration fees for crypto exchanges as part of its broader strategy to bolster industry compliance.

Nigeria’s digital assets market has experienced significant growth in recent years, emerging as the world’s second-largest in terms of crypto adoption by 2023. Acknowledging this burgeoning digital economy, authorities have aimed to strike a balance between fostering industry expansion and upholding rigorous regulation, highlighting Nigeria’s position as a global leader in cryptocurrency adoption.