Nigeria Sets 30-Day Deadline for VASPs to Meet New Regulations

The Nigerian Securities and Exchange Commission (SEC) has announced significant updates to digital asset regulations. Virtual Asset Service Providers (VASPs) must update their applications within 30 days to comply with the new rules regarding digital asset issuance, offering platforms, exchange, and custody.

New Regulatory Framework for Digital Assets

In an official notice, the SEC unveiled plans to enhance the regulatory framework for digital assets. The amendments aim to create a more comprehensive and adaptable system to address the complexities of the digital asset market. This update is part of Nigeria’s broader initiative to improve oversight of its rapidly growing cryptocurrency sector.

To facilitate this transition, the SEC has introduced the Accelerated Regulatory Incubation Programme (ARIP). This specialized compliance initiative provides VASPs with a structured pathway to align with the new regulatory standards. A dedicated onboarding window has been established to support VASPs’ participation in ARIP.

The SEC has emphasized that it will enforce actions against any VASP that does not comply with the directives outlined in its Circular. This move underscores the SEC’s commitment to maintaining a robust regulatory environment.

Following the appointment of Emomotimi Agama as the new SEC Director-General, the SEC proposed increasing the registration fee for crypto exchanges from 30 million naira ($18,620) to 150 million naira ($93,000). This proposal reflects the SEC’s strategy to ensure that only serious and well-capitalized entities participate in the market.

In addition to these SEC changes, the Central Bank of Nigeria (CBN) has issued guidelines governing banking relationships and account operations for VASPs in the country. These guidelines are designed to ensure a stable and secure banking environment for digital asset transactions.