The Nigerian Securities and Exchange Commission (SEC) recently launched a new registration program aimed at speeding up the registration process for virtual asset service providers (VASPs). According to the West African country’s securities market regulator, the move is an important amendment to existing rules in order to modernize the regulatory framework and adapt to the growing complexity of the cryptocurrency ecosystem.

Nigeria’s SEC sets 30-day deadline to speed up VASP registration

In March this year, the Nigerian SEC announced changes to the rules for the issuance, issuance platform, trading and custody of digital assets, the most notable of which was the increase in the registration fee for VASPs from 30 million naira (about 20,161 US dollars) to 150 million naira (about 100,806 US dollars). This change has sparked widespread speculation in the industry that it may inhibit corporate participation on the one hand, but on the other hand help improve the financial stability of VASPs.

On June 21, the Nigerian SEC issued a new memorandum announcing the revision of the VASP registration rules and the introduction of the Accelerated Regulatory Incubation Program (ARIP). The program is expected to run for 30 days and provides a fast track for all operating and potential VASPs in Nigeria to quickly meet all registration requirements and ensure full compliance. The Nigerian SEC emphasized that all relevant parties should initiate the ARIP through its electronic portal, because VASPs that fail to comply with the registration plan will face prosecution by the Nigerian SEC immediately after completing the registration.

Notably, these new initiatives follow the appointment of Emomotimi Agama as the new head of the Nigerian SEC in April. Agama is known for his crypto-friendly stance, but soon after taking office, he clashed with stakeholders in the growing cryptocurrency industry in sub-Saharan Africa. In particular, in May, Agama launched a campaign against the presence of the Nigerian naira on cryptocurrency exchanges, which the Nigerian government blamed as one of the reasons for the currency's sharp devaluation last year. This action led to the delisting of the naira from multiple exchanges, including KuCoin and Binance.

Through these measures, the Nigerian SEC has shown its determination to strictly regulate VASPs, and also reflects the Nigerian government’s regulatory attitude and strategy in the field of cryptocurrency. Although Nigeria is one of the fastest growing cryptocurrency centers in the world, these actions by the government may have a profound impact on the country’s cryptocurrency market.

Nigeria strengthens regulation of cryptocurrency sector

The Central Bank of Nigeria took an important step in December 2023 by lifting a long-standing ban on banks opening accounts for virtual asset service providers (VASPs), marking a shift in Nigeria's attitude towards cryptocurrencies from a blanket ban to regulatory inclusion. Although this policy reversal shows the government's more open stance on cryptocurrencies, microfinance banks still appear to face obstacles in facilitating cryptocurrency transactions.

In addition, the Nigerian Securities and Exchange Commission (SEC) recently raised VASP registration fees and launched the Accelerated Regulatory Incubation Program (ARIP), which indicates that the Nigerian government may take stricter regulatory measures on the acceptance and use of cryptocurrencies. These policy changes, combined with the Nigerian SEC's new memorandum and the launch of the ARIP program, reflect the West African country's strict stance on cryptocurrency regulation.

It is worth noting that Nigeria has become one of the fastest growing cryptocurrency markets in the world. There are about 22 million people in the country, of which 10.3% are active cryptocurrency holders. This large user base highlights Nigeria's important position in the cryptocurrency field, and also explains why the government's strengthening of supervision is urgent and important. With the gradual improvement of the regulatory environment, Nigeria is expected to provide a more solid foundation for the legal and healthy development of cryptocurrency. #尼日利亚 #SEC #加密货币监管 #VASP

Conclusion

The Nigerian SEC has demonstrated its determination to strengthen cryptocurrency regulation by introducing a 30-day VASP registration period. This measure aims to increase market transparency and security by accelerating the compliance process while creating a more stable and predictable operating environment for VASPs.

As Nigeria rapidly develops in the field of cryptocurrency, the government's regulatory strategy is also evolving. Through active regulatory measures, Nigeria not only protects the interests of investors, but also lays the foundation for the legalization and further innovation of cryptocurrency. This move indicates that Nigeria may become an important regulatory model in the global cryptocurrency field and lead the healthy development of the industry.