SEC Issues Notice to Amend Digital Asset Rules in Nigeria

The Nigerian Securities and Exchange Commission (SEC) has announced amendments to its regulations on Digital Asset Issuance, Offering Platforms, Exchange, and Custody. A notice on June 21, 2024, introduced the Accelerated Regulatory Incubation Programme (ARIP) for Virtual Assets Service Providers (VASPs), giving them a 30-day window to comply via the SEC ePortal. Post this period, non-compliant VASPs will face enforcement actions.
This move follows heightened scrutiny and regulatory actions against cryptocurrency exchanges in Nigeria. In February 2024, the government ordered major platforms like Coinbase, Quidax, and Binance to cease operations, citing concerns over speculation and exchange rate manipulation. Binance, in particular, faced accusations of money laundering and tax evasion but saw the Federal Inland Revenue Service (FIRS) withdraw charges against its officials recently.
These developments occur amid broader apprehensions, with the National Security Adviser labeling crypto trading a national security issue and calls for stricter regulations growing within the local tech ecosystem.