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Nigeria’s SEC Proposes Substantial Fee Hikes for Crypto Exchanges
Nigeria’s Securities and Exchange Commission (SEC) recently announced amendments to the regulatory framework governing platforms offering cryptocurrency services. The proposed changes include significant fee increases for crypto exchanges, indicating a stricter approach to the sector.
Proposed Fee Adjustments
- Application fees for digital asset exchanges, offering platforms, and custodians to increase from 100,000 Naira to 300,000 Naira
- Processing fee to rise from 300,000 Naira to 1 million Naira
- Registration fee set to spike by 400%, from 30 million Naira to 150 million Naira
The SEC aims to raise crypto exchange registration fees to 150 million Naira from 30 million Naira. This move is part of efforts to provide clarity in regulations and consider feedback from stakeholders and discussions with the Central Bank of Nigeria.
Key Changes in Regulatory Framework
- Renaming of rules and guidelines to “Rules on Digital Assets Issuance, Offering Platforms, Exchange, and Custody”
- Requirement for exchanges to obtain a virtual asset service provider (VASP) license
- Introduction of new minimum paid-up capital requirements for crypto service providers
The SEC emphasized that these amendments are aimed at enhancing clarity in the market and integrating insights from industry stakeholders and engagements with the Central Bank of Nigeria.
Challenges and Criticisms
While the proposed changes are intended to improve the regulatory landscape, concerns have been raised about the high paid-up capital requirements that could favor foreign firms over local entities. The recent dispute involving Binance and Nigerian authorities further highlights the challenges faced by crypto entities operating in Nigeria.
Economic Context
Nigeria’s economic challenges, including record-high inflation, have influenced the regulatory decisions in the crypto sector. Despite being one of the most cryptocurrency-aware populations globally, Nigeria’s crypto adoption rate has not translated into increased foreign investment as expected.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
