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The Securities and Exchange Commission (SEC) has proposed a new regulatory framework for Nigeria’s digital asset industry, prescribing registration fees of N30 million and minimum capital requirements of up to N2 billion for operators in the rapidly expanding market.
Under the proposed Rules on Digital and Virtual Asset Operations, Custody and Markets, 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 proposed rules also impose significantly higher minimum capital requirements on operators as the commission moves to strengthen prudential safeguards and establish clearer operational standards for businesses participating in the country’s digital asset ecosystem.
Under the framework, DAXs and DACs would each be required to maintain a minimum capital of N2 billion, while DAPOs, DAOPs and RATOPs would have a minimum capital requirement of N500 million each. Virtual Asset Service Providers (VASPs) would be required to maintain minimum capital of N200 million.
The latest move by the SEC forms part of the federal government’s broader effort to establish a coordinated regulatory regime for the digital asset market, following recent measures covering virtual assets and their taxation.
The commission also proposed that regulated entities maintain a fidelity insurance bond equivalent to at least 25 per cent of their minimum paid-up capital.
In addition to the N30 million registration fee, applicants would pay a processing fee of N100,000 and an application fee of N300,000.
Entities seeking admission into the SEC’s Accelerated Regulatory Incubation Programme (ARIP) would also be required to pay an initial assessment fee of N200,000 and an ARIP application fee of N2 million.
The proposed framework further introduces supervisory charges based on the adjusted turnover of regulated entities.
Under ARIP, a DAX would pay a supervisory fee equivalent to 0.015 per cent of adjusted turnover, while other entities participating in the programme would pay 0.0075 per cent.
Upon full registration, the supervisory fee would increase to 0.025 per cent of adjusted turnover for DAXs and 0.015 per cent for other regulated entities.
The commission also tightened requirements relating to the physical presence and management of digital asset companies operating in Nigeria.
Under the proposed rules, an entity seeking registration would, except where otherwise approved by the SEC, be required to incorporate in Nigeria, maintain a registered office in the country and ensure that its Chief Executive Officer, Managing Director or equivalent principal officer is resident in Nigeria.
“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 stated.
Source: www.arise.tv