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24/06/24
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Nigerian Commission Introduces Amendment of Rules on Digital Asset Platforms
On June 21, Nigeria’s Securities and Exchange Commission (SEC) announced a framework for the Accelerated Regulatory Incubation Programme (ARIP) to onboard Virtual Asset Service Providers (VASPs).
According to the SEC, they are currently amending the rules on the Rules on Digital Assets Issuance, Offering Platforms, Exchange and Custody towards expanding the scope of regulation based on current realities.
ARIP provided a path for VASPs to operate in line with the new regulatory requirements and the regulator has established a unique window for the onboarding process to ensure their participation in the program.
VASPs can access the onboarding process via the regulator’s ePortal and must be completed within thirty days from the announcement date. Any VASP operating against the regulator’s directives in the circular will face enforcement action.
People have called on the authorities to urgently provide regulatory stipulations for the digital asset industry in Nigeria instead of frustrating companies within the industry through crackdowns, clampdowns and more. Proper regulation will reposition the Nigerian market.
Three months ago, the regulator proposed to amend rules meant to guide platforms providing services related to cryptocurrency, including hiking registration fee for digital asset exchanges from $18,620 to $93,000.
They also proposed increasing the application fee from $62 to $186 for platforms providing digital assets, digital asset exchanges, and digital asset offering platforms. Part of the proposed change was to rename the rules and guidelines from “New Rules on Issuance, Offering Platforms and Custody of Digital Assets” to “Rules on Digital Assets Issuance, Offering Platforms, Exchange, and Custody.”
Nigeria is still among the fastest-growing cryptocurrency economies globally, as it was the second-biggest economy in regard to cryptocurrency adoption last year.
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