Commission Proposes Tougher Rules, ₦2bn Capital Base for Crypto Exchanges
The Securities and Exchange Commission has proposed stricter financial and operational requirements for cryptocurrency businesses seeking to operate in Nigeria, including a registration fee of ₦30 million and capital requirements of up to ₦2 billion for some operators.
The proposals are contained in draft rules released by the commission on August 20 covering digital and virtual asset operations, custody and markets. Under the framework, digital asset exchanges and custodians would each be required to maintain a minimum capital of ₦2 billion, while several other categories, including digital asset platform and offering operators, would face a ₦500 million threshold.
Beyond entry requirements, the proposed framework would introduce continuing regulatory charges based on operators’ turnover, insurance obligations and additional oversight for firms participating in the SEC’s regulatory incubation programme. The commission also proposes that companies targeting Nigerian residents cannot provide digital or virtual asset services without obtaining the required registration or approval.
The SEC is also seeking to place limits on retail participation in digital asset offerings, with individual investors proposed to be restricted to ₦1 million per issuer and ₦10 million across such offerings within a 12-month period. Investors exceeding specified thresholds would face additional checks, including risk disclosures, consent and assessments of their financial capacity and investment experience. The proposals are subject to the regulatory process and could reshape the cost, structure and level of oversight within Nigeria’s growing cryptocurrency market.
