The Nigerian Securities and Exchange Commission’s New Initiative for VASP Registration

The Nigerian Securities and Exchange Commission (SEC) has introduced a new initiative aimed at expediting the registration process of virtual asset service providers (VASPs). This initiative, serving as an amendment to existing regulations, seeks to align the current regulatory framework with the complexities of the crypto ecosystem.

Nigerian SEC Sets 30-Day Deadline for VASP Registration

In March, the Nigerian SEC made significant changes to its Rules on Digital Assets Issuance, Offering Platforms, Exchange, and Custody. One notable change was the increase in registration fees for VASPs from 30 million naira to 150 million naira, a move that generated speculation but also aimed to enhance financial stability among VASPs.

In a new memo released on June 21, the SEC unveiled a specific amendment to VASP registration rules, introducing the Accelerated Regulatory Incubation Program (ARIP). This program, running for 30 days, provides an exclusive opportunity for all operating and prospective VASPs in Nigeria to swiftly meet all requirements for full compliance.

All concerned parties are urged to begin the ARIP on the SEC ePortal, as failure to comply may lead to immediate prosecution by the SEC upon program completion.

This initiative comes on the heels of Emomotimi Agama’s appointment as the new director-general of the Nigerian SEC. Agama, known for his crypto-friendly stance, has faced challenges from stakeholders in Sub-Saharan Africa’s growing crypto industry.

Nigeria’s Embrace of Stringent Cryptocurrency Regulations

In December 2023, the Central Bank of Nigeria lifted a two-year ban on banks operating accounts for VASPs, signaling a regulatory shift towards cryptocurrencies rather than an outright prohibition. However, microfinance banks are still facing restrictions on facilitating crypto trading transactions.

With the recent registration fee hikes and the introduction of the ARIP program, Nigeria appears set to adopt a strict approach to cryptocurrency trading and usage.

Nigeria stands as one of the world’s fastest-growing crypto hubs, with approximately 22 million active crypto owners, accounting for 10.3% of the nation’s population.

Featured image from The Cable, chart from Tradingview