Cryptocurrency Analysts Recommend Nigeria SEC to Revise Exchange Licensing Guidelines

Nigeria’s cryptocurrency analyst Rume Ophi says the Nigeria Securities and Exchange Commission’s (SEC) cryptocurrency licensing requirements should revisit the Virtual Asset Service Provider (VASP) guidelines to enable local cryptocurrency exchanges to obtain licenses to operate in the country. . Ophi stated that the existing guidelines provided by the Nigerian SEC are not conducive to local cryptocurrency exchanges and that it should prioritize local exchanges when formulating guidelines. In order to obtain a VASP license from the Nigerian SEC, local exchanges must comply with application process requirements, pay registration fees and other applicable fees. Ophi noted that many local exchanges cannot afford the minimum initial capital requirement of N500 million (approximately $556,620), which he said will result in mainly foreign exchanges operating in Nigeria. Web3 Nigeria legal representative Kue Barinor Paul supported Ophi’s sentiments and said that Nigeria’s cryptocurrency exchanges and VASPs may need to merge to meet the Nigeria SEC’s licensing requirements. Paul said the Nigeria SEC needs to rework the licensing registration framework as the current requirements are largely friendly to foreign exchanges. In May 2022, the Nigerian SEC issued "New Regulations on Digital Asset Issuance, Trading Platforms and Custody." Ophi further stated that the National Assembly of Nigeria needs to be involved to ensure that the licensing requirements of the Nigerian SEC are in line with the realities of the country’s economy. (Cointelegraph)