Nigeria's Securities and Exchange Commission (SEC) has proposed significant amendments to the regulations governing platforms offering cryptocurrency services.
The suggested changes include a substantial increase in the registration fee for crypto exchanges from 30 million naira ($18,620) to 150 million naira ($93,000).
The SEC stated that these amendments aim to provide clarity and integrate feedback from industry stakeholders, particularly following engagements with the Central Bank of Nigeria (CBN).
Under the proposed revisions, digital asset exchanges, offering platforms, and custodians would face higher application and processing fees.
The application fee would rise from 100,000 naira ($62) to 300,000 naira ($186), while the processing fee would surge from 300,000 naira ($186) to 1 million naira ($620). Additionally, the registration fee would skyrocket by 400%, reaching 150 million naira ($93,102).
Furthermore, the SEC intends to rename the regulations from "New Rules on Issuance, Offering Platforms, and Custody of Digital Assets" to "Rules on Digital Assets Issuance, Offering Platforms, Exchange, and Custody" to reflect their broader scope.
While the SEC attributes these amendments to stakeholder input, critics argue that the requirement of a 500 million naira ($310,343) paid-up capital would disproportionately benefit foreign firms and disadvantage local entities.
Nigeria has witnessed significant growth in its crypto economy, ranking as one of the world's fastest-growing markets. The country was also among the top adopters of cryptocurrency in 2023.
However, Nigeria's decision to abandon its currency peg in June 2023 led to record-high inflation rates, reaching nearly 30% in January 2024, according to the National Bureau of Statistics.
