The Nigerian Securities and Exchange Commission (SEC) has proposed a 400% increase in registration fees for cryptocurrency companies amid ongoing issues with Binance.
The amendments affect digital asset issuers, exchanges, and custodial platforms. The regulator suggests increasing:
- the application fee from 100,000 naira to 300,000 naira (from ∽$64 to $190 at the current rate);
- the registration fee from 30 million naira to 150 million naira (from ∽$19,000 to $95,360);
- the mandatory share capital to 1 billion naira (∽$635,720).
According to the SEC, the amendments will provide the market with “clarity” and allow for “consideration of proposals from industry stakeholders.”
The initiative comes as the national currency falls to a record low against the dollar. Since February 25, local authorities have detained Binance’s Vice President of Global Intelligence and Investigations Tigran Gambaryan and the exchange’s Director for West and East Africa, Nadim Anjarwalla.
Reports indicate they are being questioned “as part of an investigation by security agencies into currency market regulation.” Their court-sanctioned detention period ended on March 12.
According to the WSJ, the Binance case is set for a hearing on March 20. Until then, the executives remain detained without charges.
Previously, Nigerian authorities accused the platform of financing terrorism, money laundering, and manipulating the naira exchange rate. The local central bank reported that $26 billion passed through Binance in the past year, with sources “impossible to precisely determine.”
In March, the local House of Representatives Committee on Financial Crimes summoned Binance CEO Richard Teng for questioning.
The company was asked to provide a list of its top 100 users in Nigeria and the entire transaction history for the past six months. It was also required to settle any outstanding tax obligations.