In a move that has sent ripples through the cryptocurrency community, Nigeria’s Securities and Exchange Commission (SEC) is making headlines with its recent proposals to dramatically alter the regulatory landscape for crypto platforms operating within the country. At the heart of these proposed changes is a significant hike in the registration fees for cryptocurrency exchanges.
Under the new proposal, the registration fee for crypto exchanges is set to soar from the current ₦30 million ($18,620) to a staggering ₦150 million ($93,000), marking an unprecedented 400% increase. But the escalation doesn’t stop there. The SEC is also looking to adjust the fees associated with other crypto-related services, with the filing/application fee for digital asset exchanges and offering platforms potentially increasing from ₦100,000 ($62.81) to ₦300,000 ($186).
Moreover, the processing fee is on track to rise from ₦300,000 ($186) to ₦1 million ($628.06), adding to the financial burden for companies looking to operate within Nigeria’s crypto space.
In addition to the fee adjustments, the SEC is proposing a name change for the rules and guidelines governing the sector, from “New Rules on Issuance, Offering Platforms, and Custody of Digital Assets” to the more comprehensive “Rules on Digital Assets Issuance, Offering Platforms, Exchange, and Custody.” According to the SEC, this rebranding and the proposed changes aim to enhance clarity and incorporate feedback received from industry stakeholders.
However, these proposed changes have sparked controversy and concern among local cryptocurrency advocates. Critics argue that the steep fee increases will disproportionately favor large, often foreign, companies with the financial capacity to absorb these costs, potentially sidelining smaller local players and stifling the growth of Nigeria’s burgeoning crypto ecosystem.
As the SEC’s proposals continue to stir debate, the future of cryptocurrency regulation in Nigeria hangs in the balance, with many waiting to see how these potential changes will reshape the industry.
