New rules and compliance program for digital assets announced by Nigerian SEC

The Nigerian Securities and Exchange Commission (SEC) has revised its regulations on Digital Asset Issuance, Offering Platforms, Exchange, and Custody.
In an official announcement, the SEC shared its intentions to update these crucial rules to create a more comprehensive and adaptable regulatory environment for digital asset markets.
As part of this regulatory transformation, the SEC has introduced the Accelerated Regulatory Incubation Programme (ARIP), a compliance initiative tailored for Virtual Assets Service Providers (VASPs) to help them align with the new regulatory requirements.
According to a circular on the SEC’s website, VASPs can participate in the ARIP through a special onboarding process accessible via the SEC ePortal. VASPs are required to complete the application within 30 days from the circular date to ensure compliance.
The SEC has also warned that non-compliant VASPs will face regulatory actions for failing to adhere to the directives outlined in the circular.
The amendment of the initial Rules on Digital Assets Issuance, Offering Platforms, Exchange, and Custody, which were issued in May 2022, coincides with the appointment of a new Director-General, Emomotimi Agama, at the SEC.
The urgent need for the Nigerian government and regulators to responsibly regulate the virtual assets industry, rather than resorting to clampdowns, crackdowns, and shutdowns, has been strongly emphasized in order to reposition the Nigerian market.
In March, Nigeria’s SEC proposed an amendment to the rules governing platforms offering crypto services, suggesting an increase in the registration fee for crypto exchanges from 30 million naira ($18,620) to 150 million naira ($93,000).
Nigeria has emerged as one of the fastest-growing crypto economies in recent years and was also the second-biggest economy in terms of crypto adoption in 2023. In August 2022, Nigeria was named the most crypto-obsessed country in the world based on the number of Google searches for “cryptocurrency” or “buy crypto.”