Nigeria SEC toughens crypto rules

digital asset exchanges and custodians operating in Nigeria will require a minimum capital of N2bn ($1.41m) under a proposed regulatory framework aimed at tightening oversight of the crypto industry.

The draft rules issued by Nigeria’s Securities and Exchange Commission (SEC) prescribe a N30m ($21,200) registration fee and set a minimum capital of N500m ($353,000) for digital asset platform operators and real-world asset tokenisation platforms.

Virtual asset service providers will need a minimum capital of N200m ($141,000) under the proposal, according to the SEC.

Regulated entities will also be required to maintain a fidelity insurance bond covering at least 25 per cent of their minimum paid-up capital.

The proposed framework requires all crypto operators serving Nigerian residents to be locally incorporated, maintain a registered office, and have their top executive resident in the country. 

No digital asset business may operate in Nigeria or target local users without SEC approval, says the commission.

Applicants face additional processing and application fees, while businesses entering the Accelerated Regulatory Incubation Programme will pay N200,000 ($141) for an initial assessment and N2m ($1,410) to apply.