Nigeria’s Securities and Exchange Commission (SEC) has proposed a significant increase in registration fees for cryptocurrency exchanges operating in the country.
The proposed amendments would increase the fee from the current 30 million naira (about $18,620) to 150 million naira ($93,000). The adjustments are part of a wider range of changes proposed to strengthen the regulatory framework for digital asset service providers.
The SEC is also seeking to provide clearer regulatory guidance for cryptocurrency services. This includes incorporating feedback from industry stakeholders, particularly following recent discussions with the Central Bank of Nigeria (CBN).
The initial rules and guidelines for cryptocurrency and digital asset service providers were published by the Nigerian SEC in May 2022. However, on Friday March 15, 2024, the Commission announced its intention to amend these rules.
Under the proposed changes, the application fee for institutions such as digital asset exchanges, digital asset offering platforms and digital asset custodians will increase from 100,000 naira ($62) to 300,000 naira ($186).
The registration processing fee will also increase by 234% from 300,000 naira ($186) to 1 million naira ($620).
Another important modification includes changing the rule name. The name changes from “New Rules on Issuance, Offering Platforms, and Storage of Digital Assets” to “Rules on Issuance, Offering Platforms, Exchanges, and Storage of Digital Assets.”
diplomatic friction
Meanwhile, Tigran Gambaryan, a US citizen and head of the criminal investigation team at the Binance cryptocurrency exchange, has been detained by Nigerian authorities without formal charges since February 26, 2024.
The circumstances surrounding the arrest prompted U.S. government intervention.
Gambarian and one of his associates were reportedly detained by armed individuals after being lured to Nigeria under false pretenses.
Their passports have been confiscated and they are being held in an undisclosed location, raising speculation that there may be a government-led effort to secure a large ransom from Binance.
The lack of clear charges against detained individuals and their denial of legal representation led to criticism of the legality of their detentions.
The case not only challenges international legal norms but also strains diplomatic relations between Nigeria and the United States, which provides Nigeria with more than $1 billion in foreign aid annually.