Nigerian SEC Demands Crypto Firms Register Within 30 Days

On June 21, Nigeria’s SEC announced that cryptocurrency firms operating in the country must re-register their activities or face enforcement actions.

This new registration requirement is linked to changes in the rules governing the issuance of digital assets, platforms, exchanges, and custody concerning virtual asset service providers (VASP).

“All existing and potential VASPs are required to visit the SEC’s electronic portal to complete the application process no later than 30 days from the date of this circular,” the statement reads.

In 2023, Nigeria ranked second in the global cryptocurrency adoption index by Chainalysis, despite the country’s stringent policies towards the industry.

Regulatory skepticism became particularly pronounced at the beginning of 2024, when Nigerian authorities accused several cryptocurrency exchanges of involvement in money laundering and negatively impacting the national currency’s exchange rate.

Specifically, the case against Binance is ongoing. Amid this investigation, the SEC proposed a 400% increase in registration fees for crypto companies.

The agency now plans to develop a pilot program for a regulated liquidity pool, including tokenized bonds and deposits.

The Central Bank of Nigeria has made contradictory statements regarding the crypto market. In 2017, the regulator stated it could not control or regulate Bitcoin. In 2021, it banned banks from servicing crypto exchanges, a restriction lifted in 2023.

At the end of April, the central bank denied a request to freeze bank accounts of crypto exchange clients.

In May, several Nigerian fintech companies warned clients against conducting cryptocurrency transactions through their services, threatening to block accounts.