Nigerian SEC Sets 30-Day Deadline for VASPs Compliance with New Digital Asset Regulations

• The Nigerian SEC has set a 30-day deadline for Virtual Asset Service Providers (VASPs) to update their applications in line with newly amended digital asset regulations.
• This recent mandate aims to enhance regulatory oversight and compliance within Nigeria’s burgeoning cryptocurrency market.
• “This initiative underscores the SEC’s commitment to fostering a robust and compliant digital asset ecosystem,” stated a key regulatory official.

Nigerian SEC Demands Compliance: VASPs Given 30 Days to Update Applications Under New Digital Asset Regulations.

New Compliance Mandate for VASPs

The Nigerian Securities and Exchange Commission (SEC) has imposed a strict 30-day deadline for Virtual Asset Service Providers (VASPs) to bring their applications up to date with the latest digital asset regulatory requirements. This move highlights the SEC’s intensified focus on strengthening the regulatory framework governing digital assets in Nigeria.

Enhanced Oversight and Regulatory Strategy

In March, the Nigerian SEC introduced comprehensive rules to license, register, and monitor VASPs, reflecting a broader strategy to bring greater oversight to the digital asset market. This regulatory tightening follows a notable decision by Binance to cease offering Nigerian Naira services amidst a changing regulatory landscape. The SEC has also launched the Accelerated Regulatory Incubation Programme (ARIP), designed to help VASPs comply with the new regulations.

Amendments and Industry Implications

Recent amendments to the SEC’s rules on Digital Assets Issuance, Offering Platforms, Exchange, and Custody signify a milestone in regulatory evolution. These changes, introduced shortly after Emomotimi Agama’s appointment as the new Director-General, aim to provide a structured yet flexible regulatory environment. A significant proposed change includes increasing the registration fee for crypto exchanges from 30 million naira ($18,620) to 150 million naira ($93,000), emphasizing the need for financially stable entities in the market.

Impact on Nigeria’s Crypto Landscape

Nigeria’s stringent regulations come as the country is recognized as a key player in the global cryptocurrency arena, ranking high in terms of adoption. The revised rules strive to balance fostering growth in the rapidly expanding market while instituting essential regulatory measures to ensure security, compliance, and overall market stability.

Conclusion

With these stringent updates, the Nigerian SEC aims to fortify the digital asset sector by enforcing compliance and regulatory integrity. VASPs are urged to act swiftly within the 30-day window to align with the new rules, ensuring they remain operational and compliant. This ongoing regulatory evolution is pivotal in shaping a secure and compliant future for Nigeria’s digital asset market.