Crypto Businesses Get N2bn Capital Entry Bar

The Securities and Exchange Commission (SEC) has unveiled a broader regulatory framework for Nigeria’s digital asset market, proposing higher registration fees, tougher capital requirements and enhanced supervisory obligations for crypto businesses operating in the country.

Under the proposed Rules on Digital and Virtual Asset Operations, Custody and Markets, Digital Asset Exchanges (DAXs) and Digital Asset Custodians (DACs) would each be required to maintain minimum capital of N2 billion.

Digital Asset Platform Operators (DAPOs), Digital Asset Offering Platforms (DAOPs) and Real World Asset Tokenisation Platforms (RATOPs) would require minimum capital of N500 million each, while Virtual Asset Service Providers (VASPs) would face a N200 million minimum capital requirement.

The SEC also proposed a uniform N30 million registration fee for DAXs, DACs, DAPOs, DAOPs and RATOPs, signalling a significant increase in the regulatory cost of participating in Nigeria’s rapidly expanding digital asset ecosystem.

Applicants would additionally pay a N100,000 processing fee and N300,000 application fee, while entities seeking admission under the Accelerated Regulatory Incubation Programme (ARIP) would pay N200,000 for initial assessment and N2 million for ARIP application.