As an analyst with extensive experience in the African digital asset market, I strongly believe that the Nigerian Securities and Exchange Commission’s (SEC) recent regulatory update is a positive step towards strengthening the framework for Virtual Asset Service Providers (VASPs) and ensuring better compliance within the digital asset sector.
The Nigerian Securities and Exchange Commission (SEC) has given Virtual Asset Service Providers (VASPs) a 30-day timeline to make necessary adjustments to their applications based on recent modifications in the regulations concerning Digital Asset Issuance, Offering Platforms, Exchanges, and Custody.
Through a public announcement, we’re introducing revisions aimed at enhancing the regulatory structure and promoting stricter adherence in the digital asset industry. The streamlined application procedure for these updates can be found on the SEC ePortal, underscoring the significance of submitting applications promptly to comply with the new rules.
Regulatory Update and Application Requirements
In March, Nigeria’s Securities and Exchange Commission (SEC) announced new regulations for Virtual Asset Service Providers (VASPs). These rules cover licensing, registration, and inspections of VASPs, signaling Nigeria’s growing control over its digital asset market. This regulatory move came amid heightened attention on cryptocurrency exchanges, as illustrated by Binance‘s choice to discontinue Nigerian Naira (NGN) services due to the more stringent regulatory climate.
The actions taken by Binance signify the increased scrutiny by Nigerian regulators towards digital asset transactions, in light of previous legal issues the company encountered in the country. In response, the Securities and Exchange Commission (SEC) initiated the Accelerated Regulatory Incubation Programme (ARIP), designed exclusively for Virtual Asset Service Providers (VASPs), to help them adhere to the new regulatory framework.
Based on a notice posted on the SEC’s website, a new opportunity for Virtual Asset Service Providers (VASPs) to join the Alternative Trading System (ARIP) has been created via the SEC ePortal. This initiative necessitates VASPs to submit and complete application updates within thirty days of the notice’s publication. The SEC strongly advises that non-compliant VASPs will be subjected to regulatory sanctions, underscoring the importance of complying with these new guidelines.
Amendments and Industry Impact
As a researcher studying the latest developments in financial regulations, I’m excited to share that the Securities and Exchange Commission (SEC) has recently updated its Rules concerning Digital Assets Issuance, Offering Platforms, Exchanges, and Custody. These rules were initially unveiled in May 2022. The timing of this update is particularly noteworthy as Emomotimi Agama assumes the role of Director-General – a move that underscores the SEC’s commitment to more responsible regulation of virtual assets. Instead of imposing arbitrary restrictions or shutdowns, the focus now shifts towards creating well-defined rules for these emerging markets.
As a financial analyst, I would describe it this way: In March, a proposed amendment emerged with a suggestion to elevate the crypto exchange registration fee from 30 million naira ($18,620) to a more substantial 150 million naira ($93,000). The primary objective behind this considerable increase is to fortify our regulatory framework and allow only financially robust and compliant entities to thrive in the crypto sector.
As a researcher studying the global crypto market, I’ve observed Nigeria’s significant role in this dynamic industry, with the country ranking as the second-largest economy in cryptocurrency adoption by 2023. In response to this trend, new regulations have been proposed to strike a balance between fostering the crypto market’s growth and implementing essential oversight for secure and compliant development.
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2024-06-21 19:17