SEC Proposes N30m Registration Fee, N2bn Capital Requirement for Crypto Exchanges

The Securities and Exchange Commission (SEC) has proposed a new regulatory framework for Nigeria’s digital asset market, setting a N30 million registration fee and a N2 billion minimum capital requirement for Digital Asset Exchanges and Digital Asset Custodians.

The proposal was contained in the draft Rules on Digital and Virtual Asset Operations, Custody and Markets released by the Commission. It seeks to establish prudential and operational standards for all firms providing virtual asset services in the country.

Under the framework, Digital Asset Platform Operators, Digital Asset Offering Platforms and Real World Asset Tokenisation Platforms would each be required to have minimum capital of N500 million. Virtual Asset Service Providers would require N200 million.

Beyond the N30 million registration fee, applicants would also pay a N100,000 processing fee and a N300,000 application fee. Firms seeking to operate under the SEC’s Accelerated Regulatory Incubation Programme would pay an additional N200,000 initial assessment fee and a N2 million ARIP application fee.

The SEC also proposed ongoing supervisory fees. A DAX operating under ARIP would pay 0.015 per cent of adjusted turnover, rising to 0.025 per cent after full registration. Other regulated entities would pay 0.0075 per cent under ARIP and 0.015 per cent after full registration.

The framework further mandated that any entity seeking registration must be incorporated in Nigeria, maintain a registered office in the country, and have its CEO or managing director resident in Nigeria, adding that regulated entities would also be required to maintain a fidelity insurance bond covering at least 25 per cent of their minimum paid-up capital.

“No person shall conduct any digital or virtual asset business, service, function or activity in Nigeria, or targeted at persons resident in Nigeria, unless registered, approved or authorised by the Commission,” the SEC stated.

For foreign stablecoin issuers, the SEC said they must appoint a local representative, demonstrate authorisation in an acceptable foreign jurisdiction, and comply with Nigeria-specific reserve, liquidity and redemption conditions.

The draft rules come on the heels of the Presidential Executive Order on Virtual Assets Coordination signed last month and new virtual asset tax guidelines issued by the Nigeria Revenue Service.

The SEC has also admitted three additional VASPs into its ARIP, bringing the total number of crypto firms in the regulatory sandbox to 14.

The Central Bank of Nigeria on August 12 also opened applications for the second cohort of its Regulatory Sandbox with a dedicated track for VASPs.

The Commission said the new capital and fee thresholds are aimed at ensuring financial soundness, investor protection and market integrity in Nigeria’s fast-growing digital asset ecosystem.