The Securities and Exchange Commission (SEC) has unveiled a proposed regulatory framework that would require cryptocurrency and digital asset operators in Nigeria to pay a registration fee of N30 million and meet minimum capital requirements of up to N2 billion, in a move aimed at strengthening oversight of the country’s fast-growing digital asset market.
The proposed regulations, titled Rules on Digital and Virtual Asset Operations, Custody and Markets, outline new licensing, capitalisation and operational requirements for participants across Nigeria’s digital asset ecosystem.
Under the draft framework, Digital Asset Exchanges (DAXs), Digital Asset Custodians (DACs), Digital Asset Platform Operators (DAPOs), Digital Asset Offering Platforms (DAOPs) and Real World Asset Tokenisation Platforms (RATOPs) would each be required to pay a registration fee of N30 million.
The SEC is also proposing stricter prudential standards through higher minimum capital requirements for regulated entities. Digital Asset Exchanges and Digital Asset Custodians would be required to maintain a minimum capital base of N2 billion each, while DAPOs, DAOPs and RATOPs would be required to maintain a minimum capital of N500 million. Virtual Asset Service Providers (VASPs) would be expected to maintain a minimum capital threshold of N200 million.
The proposals form part of the Federal Government’s broader efforts to establish a comprehensive regulatory regime for digital assets, following recent policy measures targeting virtual asset activities and taxation.
In addition to capital requirements, the SEC has proposed that all regulated entities maintain a fidelity insurance bond amounting to at least 25 per cent of their minimum paid-up capital, as part of measures to protect investors and strengthen risk management across the industry.
For new applicants, the commission outlined additional costs beyond the registration fee. Prospective operators would be required to pay an application fee of N300,000 and a processing fee of N100,000.
Firms seeking admission into the SEC’s Accelerated Regulatory Incubation Programme (ARIP) would also face an initial assessment fee of N200,000 and an ARIP application fee of N2 million.
The proposed rules further introduce supervisory charges based on the adjusted turnover of regulated entities. Under the ARIP framework, Digital Asset Exchanges would pay a supervisory fee equivalent to 0.015 per cent of adjusted turnover, while other entities would pay 0.0075 per cent.
Upon obtaining full registration, supervisory fees would increase to 0.025 per cent of adjusted turnover for DAXs and 0.015 per cent for other regulated entities, according to the draft regulations.
The SEC is also seeking to strengthen local oversight by tightening requirements around the physical presence and management structure of digital asset firms operating in the country.
Under the proposed framework, entities seeking registration would generally be required to be incorporated in Nigeria, maintain a registered office within the country and ensure that their Chief Executive Officer, Managing Director or equivalent principal officer resides in Nigeria, unless otherwise approved by the commission.
Reinforcing its regulatory position, the SEC stated that no individual or organisation would be permitted to provide digital or virtual asset-related services to Nigerians without obtaining the necessary approval from the commission.
“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 in accordance with these Rules,” the SEC said.
The proposed regulations are expected to reshape Nigeria’s digital asset industry by raising entry requirements for operators while providing a more structured regulatory environment for the sector. Industry stakeholders are likely to closely examine the impact of the new capital thresholds and compliance costs on innovation, competition and investment in the market.
