The Nigerian Securities and Exchange Commission (SEC) has introduced a new initiative to expedite the registration process for Virtual Asset Service Providers (VASP) to improve the regulatory framework for the crypto market.
The SEC raised VASP registration fees from 30 million naira ($20,161) to 150 million naira ($100,806) in March, aiming to enhance financial stability among VASPs.
The Accelerated Regulatory Incubation Program (ARIP) was introduced on June 21, providing a 30-day opportunity for VASPs to meet all regulatory requirements. VASPs must register through the SEC ePortal within this period or face immediate prosecution.
The initiative coincides with the appointment of Emomotimi Agama as the new director-general of the SEC. Agama, known for his crypto-friendly approach, has clashed with stakeholders in Nigeria’s growing crypto industry, leading to the delisting of the Nigerian Naira from major exchanges.
In December 2023, the Central Bank of Nigeria lifted its two-year ban on banks operating accounts for VASPs, moving towards a regulatory approach.
Nigeria’s rapid growth in crypto, with about 22 million people (10.3% of the population) actively owning crypto, aims to create a more stable and secure environment for crypto activities.
The SEC’s tightening regulations and increasing fees aim to eliminate unqualified players and strengthen market integrity, building consumer confidence and fostering industry growth.
Last week, Binance CEO Tigran Gambaryan was denied bail by a Nigerian court, a family representative said. The judge delayed Binance and Gambaryan’s trials until May 22 and 23.
