In a move that could reshape Nigeria’s cryptocurrency landscape, the Securities and Exchange Commission (SEC) is proposing significant changes to regulations governing crypto platforms. These changes, if implemented, will have far-reaching effects on the industry.
One of the most striking proposals is the substantial increase in registration fees for crypto exchanges. Currently set at ₦30 million ($18,620), the SEC plans to raise this fee to ₦150 million ($93,000), representing a staggering 400% increase.
This move is likely to impact both existing exchanges and potential newcomers, raising concerns about accessibility within the industry.
But it doesn’t stop there. The SEC is also eyeing adjustments to other fees associated with crypto-related services. For instance, the filing/application fee for digital asset exchanges and offering platforms could surge from ₦100,000 ($62.81) to ₦300,000 ($186), while the processing fee may see a similar hike from ₦300,000 ($186) to ₦1 million ($628.06).
These changes could add significant financial burdens to crypto businesses operating in Nigeria.
Furthermore, the SEC is proposing a revamp of the rules and guidelines governing digital assets. The proposed new name, “Rules on Digital Assets Issuance, Offering Platforms, Exchange, and Custody,” aims to provide clarity and better reflect the scope of the regulations.
While clarity is essential, the renaming of the rules is just one aspect of the broader regulatory overhaul.
According to the SEC, these proposed changes are driven by the need for clarity and are informed by feedback from industry stakeholders.
However, critics argue that the steep fee increases could disproportionately benefit foreign companies, potentially leaving local players at a disadvantage.
This move by the SEC comes on the heels of other regulatory changes in Nigeria’s financial landscape. In February, the Central Bank of Nigeria (CBN) increased the licensing fee for international money transfer operators to ₦10 million ($6,280.58), signalling a broader trend of tightening regulations.
As Nigeria grapples with these regulatory shifts, the future of its cryptocurrency industry hangs in the balance. Will these proposed changes foster growth and stability, or will they stifle innovation and exclude local players? Only time will tell as stakeholders await further developments from the SEC.
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