Nigerian SEC Introduces 30-Day Deadline for VASP Registration
The Nigerian Securities and Exchange Commission (SEC) has rolled out a new initiative aimed at expediting the registration process for virtual asset service providers (VASP). This initiative seeks to revise the existing regulations to better align with the evolving landscape of the crypto industry.
- Increased Registration Fees:
- In March, the Nigerian SEC announced revisions to its Rules on Digital Assets Issuance, Offering Platforms, Exchange, and Custody.
- The commission raised the registration fees for VASPs from 30 million naira to 150 million naira, generating mixed reactions within the industry.
- Introduction of ARIP:
- On June 21, the Nigerian SEC released a memo introducing the Accelerated Regulatory Incubation Program (ARIP) as an amendment to the VASP registration rules.
- ARIP provides a 30-day exclusive window for existing and prospective VASPs in Nigeria to fulfill all requirements for regulatory compliance.
- Immediate Prosecution:
- The SEC emphasizes that defaulting VASPs will face prosecution following the conclusion of the ARIP registration program.
Nigeria’s Strategy to Implement Stricter Regulations for Crypto Industry
After the Central Bank of Nigeria lifted the ban on banks servicing VASPs in 2023, the country adopted a regulatory stance towards cryptocurrencies. However, recent developments indicate a trend towards stricter oversight of the crypto space.
- Exclusion of Microfinance Banks:
- Microfinance banks are still limited in facilitating crypto transactions despite the policy reversal on bank-VASP interactions.
- This restriction, coupled with the increased registration fees and the ARIP initiative, suggests a more stringent approach to crypto adoption in Nigeria.
- Nigeria’s Crypto Demographics:
- Nigeria boasts a significant crypto user base, with approximately 22 million people, representing 10.3% of the nation’s population, actively engaging with cryptocurrencies.
Hot Take: Nigeria’s Crypto Regulatory Landscape
As Nigeria’s SEC intensifies efforts to streamline the registration process for VASPs and enforce stricter regulations on the crypto industry, stakeholders must navigate this evolving landscape with caution. The introduction of the ARIP program signals the government’s commitment to maintaining control over virtual asset service providers, highlighting the importance of compliance in the Nigerian crypto market.
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