The Nigerian Securities and Exchange Commission (SEC) has announced revised financial requirements for virtual currency exchanges, marking a major change in the regulatory landscape. The SEC's updated guidelines mandate a significant increase in initial filing fees for digital asset service providers, which are currently 300,000 naira (Approximately $186), the price has tripled from the previous price of 100,000 Naira.
The regulator also adjusted the processing fee to one million naira (Approximately $620), increased from the previous 300,000 Naira. The increase in registration fees is notable, increasing by 400% from 30 million naira to 150 million naira (equivalent to $93,102).
These revisions are part of broader revisions aimed at increasing clarity and reflecting insights gleaned from recent interactions with the Central Bank of Nigeria (CBN). The SEC emphasizes that these changes are a direct response to input from industry participants.
Despite the intention to promote clarity, the new rules have sparked controversy. Critics say the high paid-up capital requirement of 500 million naira could unintentionally favor international companies over local Nigerian companies.
As the country navigates economic challenges, including nearing record high inflation rates, 30%these regulatory changes could shape the future of Nigeria's burgeoning cryptocurrency market, which is recognized globally for its rapid growth and high adoption rate.