- The regulator of Nigeria intends to increase the registration fee for cryptofirms by 400%.
- According to the document, the fee could rise to 150 million Nigerian naira.
- The initiative is aimed at increasing clarity in the regulation of the crypto market, the SEC said.
The Securities and Exchange Commission of Nigeria has come up with new guidelines for cryptocurrency firms. The regulator has proposed a 400% increase in registration fees.
According to the document, foreign companies that intend to operate as a virtual asset service provider in Nigeria must obtain the appropriate license and open an office in the country. In addition, the CEO or managing director of such a firm must reside in Nigeria.
According to the SEC, cryptocurrency companies used to pay a registration fee of 30 million naira (about $18,600 at the time of writing). The regulator is pushing to raise it to 150 million naira or $93,000.
The amendment states that the new rules will apply to all platforms offering trading, exchange and transfer of virtual assets. They are aimed at enhancing regulatory clarity and take into account stakeholder inputs to the industry.
Note that the Nigerian naira has fallen 55% in 2023, according to Bloomberg data. The country’s foreign exchange reserves are at their lowest level in six years. On top of that, the nation is facing record high inflation.
Earlier we reported that the Nigerian authorities restricted access to some trading platforms and detained two top managers of Binance. They accused the company’s management of involvement in the devaluation of the naira, and also demanded from Binance the history of transactions for six months.
