Nigeria’s Securities and Exchange Commission (SEC) now demands that all Virtual Asset Service Providers (VASPs), including crypto companies, establish operations in Nigeria through its Accelerated Regulatory Incubation Programme (ARIP).
The SEC’s goal is to speed up the registration process for new Digital Assets Rules, focusing on compliance and protecting investors. Companies that don’t comply will face significant fines.
On June 21, 2024, the SEC announced that all existing and potential VASPs, including crypto brokers and dealers, must apply on the SEC ePortal within 30 days.
ARIP aims to quickly onboard companies that have already applied and those looking to register.
To join ARIP, companies must be incorporated in Nigeria, have a local office, and have their CEO or equivalent residing in the country.
Applicants must be active in the investments and securities business, plan to register or have already filed virtual asset-related applications with the SEC, submit an affidavit confirming no fraud convictions, and pay a ₦2 million processing fee.
Once approved, ARIP participants must regularly submit trading statistics, financials, and compliance reports, and they will undergo SEC inspections and audits.
Non-compliance will lead to fines starting at ₦5 million for the first violation and ₦200,000 for each additional day of non-compliance. Operating without SEC approval will result in a ₦20 million fine and potential suspension from the capital market.
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