Regulation
Crypto businesses must comply with new Nigeria regulations within 30 days
The Nigerian Securities and Exchange Commission (SEC) has issued new guidelines for Virtual Asset Service Providers (VASP). As part of an amendment to the rules on issuance, offering platforms, exchange and custody of digital assets, published in May 2022, the SEC has now introduced the Accelerated Regulatory Incubation Program (ARIP). This is accompanied by the appointment of the new Director General of the SEC, Emomotimi Agama.
VAPS must comply with the framework by July 21, 2024. The SEC has issued a Press release on this subject, stating: “The Securities and Exchange Commission [“the Commission”] hereby informs the general public that the rules relating to the issuance, offering platforms, exchange and custody of digital assets are being amended.
Regarding the reason for the amendment, the statement said: “The purpose of the amendment is to expand the scope of regulation in accordance with current realities. » He also informed the VASPs of their next steps: “By this circular, all operational and potential VASPs are invited to visit the SEC Electronic Portal to complete the application process no later than 30 days from the date of this circular.
The SEC also strictly stated that any VASP operating without going through the registration process within the next month will witness enforcement action, which may include bans and fines. Nigeria is one of the leaders in crypto adoption, as its population has massively turned to the asset class due to the instabilities experienced by its national currency. Bitcoin is a favorite in the region.
Nigeria also introduced a retail central bank digital currency (CBDC) not long ago, but the move was widely denounced and criticized by its population. The Nigerian people believe that CBDC is a way for the government to exploit the crypto trend and once again control how people transact and hold value.
However, the SEC’s new move aims to strengthen Nigeria’s crypto ecosystem and protect its users instead of the country opting for an outright ban. Time will tell how effective the new regulations will be for crypto innovation in the region.
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