The Nigeria Securities and Trade Fee (SEC) has launched a brand new initiative aimed toward expediting the registration course of for Digital Asset Service Suppliers (VASPs). In response to the West African nation’s securities market regulator, the brand new plan is an modification to current guidelines aimed toward adapting the present regulatory framework to the present complexity of the cryptocurrency ecosystem.
Nigeria SEC units 30-day deadline for VASP registration
Again in March, the Nigerian SEC introduced a number of adjustments to its digital asset issuance, platform provision, buying and selling and custody guidelines. Notably, the Fee subsequently elevated the registration charge for VASPs from N30 million (US$20,161) to N150 million (US$100,806), which induced a lot hypothesis as it could scale back company participation but additionally promote VASPs monetary stability.
In a brand new memorandum issued on June 21, the securities regulator has now printed particular revisions to the VASP registration guidelines, introducing the Accelerated Regulatory Incubation Program (ARIP).
This system, which is predicted to run for 30 days, seems to supply an “unique” window for all “working and potential” VASPs in Nigeria to shortly full all necessities to make sure full compliance.
In response to the Fee, events ought to go to the SEC Digital Portal to start out the Accelerated Regulatory Incubation Program, as all defaulting VASPs might be topic to SEC prosecution instantly upon completion of the registration program.
Apparently, this “puzzling” transfer comes after the appointment of Emomotimi Agama as the brand new Director Common of Nigeria’s SEC in April. Agama got here into workplace with a status for being crypto-friendly, however he discovered himself at loggerheads with stakeholders in sub-Saharan Africa’s rising cryptocurrency trade.
Particularly, in Might, the brand new director-general launched a marketing campaign towards the presence of the Nigerian naira on cryptocurrency exchanges, which the Nigerian authorities blamed for inflicting a major devaluation of the Nigerian naira final 12 months. This motion resulted within the naira being delisted from a number of exchanges together with KuCoin and Binance.
Nigeria to impose strict rules on cryptocurrency area
In December 2023, the Central Financial institution of Nigeria lifted a two-year ban on banks working VASP accounts, taking a regulatory strategy to cryptocurrencies moderately than outright bans.
Nonetheless, regardless of the coverage reversal, microfinance banks nonetheless seem like restricted in facilitating cryptocurrency transactions. This improvement, coupled with the rise in registration charges and the current ARIP initiative, signifies that the West African nation’s authorities will take strict measures relating to the buying and selling and use of cryptocurrencies.
Notably, Nigeria is without doubt one of the quickest rising cryptocurrency hubs on the planet, with roughly 22 million individuals, 10.3% of the inhabitants being energetic cryptocurrency homeowners.
Featured picture from The Cable, chart from Tradingview
