Nigeria’s Securities and Exchange Commission (SEC) has embarked on an ambitious regulatory revamp, rolling out new governance measures to tighten oversight of the country’s burgeoning digital assets sector. The updated guidances aim to streamline procedures, and enhance the robustness of regulatory actions vis-a-vis the increasingly complex digital currency markets.
In a bid to regulate stakeholders more effectively, the SEC has launched the Accelerated Regulatory Incubation Programme (ARIP). Tailored specifically for Virtual Assets Service Providers (VASPs), this compliance initiative helps ensure companies align with the regulatory updates in a timely fashion.
The SEC’s digital portal houses a ‘fast-track’ process for registering with ARIP, to which VASPs must apply within 30 days of the announcement. The new regulations come with a stern warning – companies that flout the new directives will be subject to regulatory sanctions.
This regulatory shakeup follows the introduction of the inaugural guidelines on digital assets in May 2022, and the subsequent appointment of Emomotimi Agama as the new director-general of the SEC. Concurrently, the SEC has proposed a fivefold increase in registration fees for crypto exchanges, as part of its broader strategy to enhance industry compliance.
Nigeria’s digital assets market has grown exponentially over the past few years, becoming the world’s second-largest in terms of crypto adoption by 2023. Recognizing this booming digital economy, the authorities have strived to strike a balance between fostering industry growth and maintaining prudent regulation, underscoring Nigeria’s status as a global leader in cryptocurrency adoption.