The Nigerian Securities and Exchange Commission (SEC) has made revisions to its regulations regarding Digital Asset Issuance, Offering Platforms, Exchange, and Custody. In an official statement, the SEC expressed its intention to update these crucial regulations in order to create a more comprehensive and adaptable regulatory environment that caters to the complexities of digital asset markets.
As part of this regulatory revamp, the SEC introduced a specialized compliance program known as the Accelerated Regulatory Incubation Programme (ARIP). This program is specifically designed for Virtual Assets Service Providers (VASPs) and provides a pathway for these entities to align themselves with the new regulatory requirements.
According to the circular posted on the SEC’s website, a special onboarding process has been established to allow VASPs to participate in the ARIP. This onboarding process can be accessed through the SEC ePortal. While the application process aims to improve compliance, VASPs are required to complete it within 30 days from the date of the circular.
Additionally, the SEC issued a strong warning that it will take strict action against any non-compliant VASPs, enforcing regulatory measures against those who fail to adhere to the directives outlined in the circular.
The amendment of the initial Rules on Digital Assets Issuance, Offering Platforms, Exchange, and Custody, which were initially issued in May 2022, follows the appointment of a new Director-General, Emomotimi Agama, at the SEC.
Meanwhile, there has been a significant emphasis on the responsible regulation of the virtual assets industry by the Nigerian government and regulators, rather than resorting to clampdowns, crackdowns, and shutdowns, in order to reposition the Nigerian market.
In March, Nigeria’s SEC proposed an amendment to the rules governing platforms that offer crypto services, suggesting an increase in the registration fee for crypto exchanges from 30 million naira ($18,620) to 150 million naira ($93,000).
Nigeria has emerged as one of the fastest-growing crypto economies in recent years and was the second-largest economy in terms of crypto adoption in 2023. Furthermore, Nigeria was recognized as the most crypto-obsessed country in the world in August 2022, based on the number of Google searches for “cryptocurrency” or “buy crypto.”
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