Nigeria’s Securities and Exchange Commission (SEC) has proposed to increase registration fees for cryptocurrency exchanges from $18,620 (30 million naira) to $93,000 (150 million naira). The SEC noted the need for clarity and input from industry stakeholders, especially following the agreement with the Central Bank of Nigeria (CBN).
The proposed amendments to the rules governing platforms providing cryptocurrency services also include increasing the filing/application fee for digital asset exchanges and custodians from $62 (100,000 Naira) to $186 (300,000 Naira) . Additionally, the processing fee will increase from $186 (300,000 Naira) to $620 (One Million Naira).
The SEC aims to rename the rules and guidance from “New Rules on Issuance, Offering Platforms, and Storage of Digital Assets” to “Rules on Issuance, Offering Platforms, Exchanges, and Storage of Digital Assets.” These changes are intended to increase clarity and incorporate feedback from stakeholders.
Critics of the proposed amendments have raised concerns about the high paid-up capital requirement of $310,343 (500 million naira), suggesting it could favor foreign companies over domestic ones.
Nigeria has seen significant growth in the cryptocurrency economy, becoming the second largest cryptocurrency adoption market in 2023. But Nigeria has faced challenges including record-high inflation since abandoning its currency peg in June 2023. In January 2024, it reached close to 30% for the 13th consecutive month.