The Securities and Exchange Commission (SEC) issued rules and guidelines for crypto and digital asset service providers in May 2023, but it proposed an amendment to the rules on Friday, March 15, 2024.
One of the major changes it proposes though, is changing the registration fees paid by crypto exchanges and other platforms that offer similar services in Nigeria.
Companies that want to offer crypto-related services to Nigerians, known to SEC as Virtual Asset Service Providers (VASPs), according to the new proposal, will now have a different set of rules.
Digital asset exchanges (DAX) or crypto exchanges, Digital Asset Offering Platforms (DAOP), and Digital Asset Custodians (DAC) will now pay a filing/application fee of ₦300,000 ($186) instead of the ₦100,000 fee it was before.
The processing fee which was initially ₦300,000 increased by 233% to ₦1 million ($620). The registration fee got a 400% increase, going from ₦30 million to ₦150 million.
The SEC said the idea behind the changes was to provide clarity and reflect suggestions made by stakeholders. It also revealed that they were based on its recent engagement with the Central Bank of Nigeria (CBN).
Interestingly, the CBN just increased the licensing fee for International Money Transfer Operators (IMTOs) from ₦5,000,000 to ₦10 million.
And while the SEC says the changes were proposed to incorporate suggestions by stakeholders, some of them already decried the ₦500 million paid-up capital, saying the exorbitant fee came at the expense of local players while massively benefiting foreign companies.
