Nigerian SEC Propose to Raise The Registration Fee For Crypto Exchanges From N30 million to N150 Million
The Nigerian Securities and Exchange Commission (SEC) has suggested amending regulations concerning platforms offering cryptocurrency services, including proposing an increase in the registration fee for cryptocurrency exchanges from 30 million naira ($18,620) to 150 million naira ($93,000).
Following the initial issuance of rules and guidelines for all crypto and digital asset service providers by the SEC in May 2022, proposed changes have been put forward as of March 15, 2024.
Under the revised guidelines, digital asset exchanges (DAX), digital asset offering platforms (DAOP), and digital asset custodians (DAC) will now be required to pay a filing/application fee of ₦300,000 ($186), up from ₦100,000. Additionally, the processing fee has surged from 300,000 naira ($186) to 1 million naira ($620). Similarly, the registration fee has seen a 400% increase, rising from 30 million naira ($18,620) to 150 million naira ($93,102).
The Securities and Exchange Commission (SEC) of Nigeria has proposed renaming the rules and guidelines governing digital assets from “New Rules on Issuance, Offering Platforms and Custody of Digital Assets” to “Rules on Digital Assets Issuance, Offering Platforms, Exchange, and Custody.”
These changes aim to provide clarity and align with suggestions from industry stakeholders. The SEC also stated that the proposals are influenced by recent discussions with the Central Bank of Nigeria (CBN).
Despite claims that the amendments were made in response to input from industry stakeholders, criticism has emerged regarding the proposed ₦500 million paid-up capital requirement. Critics argue that this exorbitant fee would primarily benefit foreign companies and place local players at a disadvantage.
