VASPs agree to comply with Nigeria’s new regulations within 30 days

  • Virtual Asset Service Providers (VASPs) To Comply With Nigeria’s New Regulations Within 30 Days

New rules designed specifically for Virtual Asset Service Providers (VASPs) were announced by the Securities and Exchange Commission (SEC) of Nigeria.

In May 2022, the SEC amended the Rules on Digital Assets Issuance, Offering Platforms, Exchange, and Custody. As a result, the Accelerated Regulatory Incubation Program (ARIP) was launched.

It coincides with the appointment of Emomotimi Agama as the new Director-General of the SEC.

VAPS must comply with the framework by July 21, 2024. The SEC issued a press release regarding the same, stating, “The Securities and Exchange Commission [“the Commission”] hereby notifies the general public, that the Rules on Digital Assets Issuance, Offering Platforms, Exchange and Custody are going through an amendment process.”

Read Also: Calls for SEC as Nigeria aims to ban cryptocurrency.

About the reason for the amendment, the release read, “The purpose of the amendment is to expand the scope of regulation in line with the current realities.”

It also instructed VASPs about their next steps, “By this Circular, all operating and prospective VASPs are hereby directed to visit the SEC ePortal to complete the application process no later than 30 days from the date of this Circular.”

The SEC also strictly stated that any VASPs operating without undergoing the registration process within the following month will witness enforcement action, which may include bans and fines.

Nigeria is one of the leaders in crypto adoption as its population has taken to the asset class in droves due to the instabilities its national currency undergoes. Bitcoin is a favorite in the region.

Nigeria also introduced a retail Central Bank Digital Currency (CBDC) not too long ago, but that move was denounced and criticized largely by its population.

The Nigerian people think the CBDC is a way for the government to tap into the crypto trend and control how people transact and hold value again.

However, the new move by the SEC looks to strengthen Nigeria’s crypto ecosystem and protect its users instead of the country going for an outright ban.

Time will tell how effective the new regulations will be for crypto innovation in the region.

Ekene Njoku

I am a passionate blogger, graphics designer, web designer and information researcher. Also, a media marketer

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