Nigeria’s Securities and Exchange Commission (SEC) has put forward a proposal to amend the regulations governing crypto service providers, suggesting an increase in the registration fee for crypto exchanges from 30 million naira ($18,620) to 150 million naira ($93,000).
The SEC stated that the proposed changes were made in order to provide clarity and incorporate feedback from industry stakeholders, particularly in light of recent discussions with the Central Bank of Nigeria. The initial rules and guidelines for crypto and digital asset service providers were issued by the Nigerian SEC in May 2022, but on March 15, 2024, an amendment to the rules was suggested.
According to the updated guidelines, digital asset exchanges, digital asset offering platforms, and digital asset custodians will be required to pay an application fee of 300,000 naira ($186), an increase from the previous fee of 100,000 naira ($62).
The processing fee has also risen from 300,000 naira ($186) to 1 million naira ($620). Similarly, the registration fee has increased by 400%, from 30 million naira ($18,620) to 150 million naira ($93,102).
Another proposed change involves renaming 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.”
The SEC stated that these amendments aim to improve clarity and incorporate feedback from industry stakeholders. They also reflect insights gained from recent discussions with the Central Bank of Nigeria.
While the SEC attributes the proposed changes to input from industry stakeholders, some have criticized the requirement of a paid-up capital of 500 million naira ($310,343). They argue that this high fee would primarily benefit foreign firms and put local entities at a disadvantage.
Nigeria has emerged as one of the fastest-growing crypto economies in the world in recent years. It was also the second-largest economy in terms of crypto adoption in 2023. In August 2022, Nigeria was named the country with the highest interest in cryptocurrency based on Google search data.
According to the Financial Times, Nigeria abandoned its currency peg in June 2023, allowing the naira to trade freely. This led to record-high inflation in the country, with consumer inflation rising for the 13th consecutive month to nearly 30% in January 2024, according to data from the National Bureau of Statistics.