SEC is set to increase crypto fees in Nigeria. The Securities Exchange Commission of Nigeria (SEC) has put forth a proposal to amend the regulations governing platforms providing cryptocurrency services.
SEC to Increase Crypto Fees in Nigeria
The Securities Exchange Commission of Nigeria (SEC) has introduced a proposal to raise the registration fee for cryptocurrency exchanges from ₦30 million ($18,620) to ₦150 million ($93,000).
This proposal comes as part of efforts to enhance clarity and integrate feedback from industry stakeholders, especially following engagements with the Central Bank of Nigeria (CBN).
In May, the SEC initially issued regulations and guidelines for all cryptocurrency and digital asset service providers. However, on Friday, March 15, 2024, it put forward an amendment to these rules.
The Securities Exchange Commission of Nigeria (SEC) Proposed Changes
The Securities Exchange Commission of Nigeria (SEC) has proposed several changes to the rules and guidelines governing platforms offering cryptocurrency and digital asset services in Nigeria.
One significant change is the renaming of the regulations from “New Rules on Issuance, Offering Platforms and Custody of Digital Assets” to “Rules on Digital Assets Issuance, Offering Platforms, Exchange, and Custody.”
Registration Fees Paid By Virtual Asset Service Providers (VASPs)
Among the proposed amendments are adjustments to the registration fees paid by virtual asset service providers (VASPs), which include digital asset exchanges (DAX), digital asset offering platforms (DAOP), and digital asset custodians (DAC). Previously, these entities paid a filing/application fee of ₦100,000, but under the new proposal, this fee would increase to ₦300,000.
Additionally, the processing fee, which was initially ₦300,000, is now set at ₦1 million. The most significant increase comes in the form of the registration fee, which is proposed to rise from ₦30 million to ₦150 million, representing a 400% increase.
What These Changes Aim To Achieve
SEC stated that these changes aim to enhance clarity and incorporate suggestions from industry stakeholders, including recent engagements with the Central Bank of Nigeria (CBN). It is worth noting that the CBN recently raised the licensing fee for international money transfer operators (IMTOs) from ₦500,000 to ₦10 million.
This move has sparked concerns among some industry stakeholders, who argue that the exorbitant fee could favor foreign companies over local players.
What Experts Think About This New Development
While the SEC maintains that the proposed changes are in response to stakeholder feedback, some industry participants have criticized the high ₦500 million paid-up capital requirement, suggesting that it may disadvantage local players in the cryptocurrency and digital asset space.
MORE RELATED POSTS
- World Trade Organization (WTO) Young Professionals Programme 2025 (Monthly Salary Of…
- ACU Early Career Conference Grants – Supporting Emerging Researchers 2024 (£2,000…
- Foreign Commonwealth & Development Office (FCDO) – Next Generation Economics Competition…
- UNESCO Prize for Girls and Women’s Education 2024 (USD $50,000 Prize)…
 has put forth a proposal){kind=link}