The Nigerian Securities and Exchange Commission (SEC) has put forth a proposal to revise the rules that govern cryptocurrency service platforms. A significant part of this proposal is a fivefold increase in the registration fee for cryptocurrency exchanges, from 30 million naira ($18,620) to 150 million naira ($93,000).
The SEC’s proposed changes also include an increase in the filing/application fee for digital asset exchanges (DAX), digital asset offering platforms (DAOP), and digital asset custodians (DAC). The fee is set to rise from ₦100,000 to ₦300,000 ($186). These changes aim to provide clarity and incorporate feedback from industry stakeholders.
These amendments were suggested by the SEC on March 15, 2024, following the initial issuance of rules and guidelines for all crypto and digital asset service providers in May 2022. The processing fee has also seen a significant increase, from 300,000 naira ($186) to 1 million naira ($620). The registration fee has seen a 400% increase, from 30 million naira ($18,620) to 150 million naira ($93,102).
In addition to these changes, the SEC has proposed renaming the “New Rules on Issuance, Offering Platforms and Custody of Digital Assets” to “Rules on Digital Assets Issuance, Offering Platforms, Exchange, and Custody.” The SEC states that these changes are designed to provide clarity and reflect suggestions made by industry stakeholders. However, it also revealed that the changes are based on its recent engagement with the Central Bank of Nigeria (CBN).
While the SEC maintains that the changes were proposed to incorporate suggestions from industry stakeholders, some have already criticised the ₦500 million paid-up capital requirement. Critics argue that the high fee would only benefit foreign companies, putting local players at a disadvantage.
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