Nigeria strengthened digital asset regulations in 2024, requiring all VASPs to obtain a new license from the securities regulator. Now the watchdog has hinted that it may disqualify some candidates for not meeting its standards.
Securities and Exchange Commission (SEC) released its first two licenses for Busha Digital and Quidax, two local exchanges, in September. Directed by Emomotimi Agama revealed at a time when the agency was reviewing dozens of other applications.
Speaking at an industry event recently, Agama warned that not every applicant will get a license.
“Certainly not everyone will qualify. The Commission will continue to provide clarity on some complex areas to assist the process,” said Asst reported through the local Nairametrics outlet.
The SEC has worked with some applicants to bring them up to standard, Agama added. He went on to reassure the industry that the agency takes its oversight role seriously, emphasizing the key role that registration plays.
“Registration goes beyond boarding and registration; it requires monitoring, education, control, and all of this is continuous… we are trying so that in the end, as a country, we will stand out in the management of this space,” he said.
In addition to registration, the SEC recently proposed a new target law ‘crypto’ influencers to “curb the menace” of social media promotions. Agama disclosed that the new law has been passed by lawmakers and is awaiting the President’s signature to become law.
The law proposed as no change The Digital Assets Rule requires VASPs engaging with influencers to obtain the SEC’s green light beforehand. On the other hand, influencers must ensure that the VASP is licensed and receive a “no objection authorization” from the supervisor. Violators face a fine of up to $6,400 or up to three years in prison.
The regulatory push from the SEC comes after a year in which Nigerian authorities badly torn on the sector. Led by the economic crime watchdog, the Economic and Financial Crimes Commission (EFCC), the crackdown has gone overseas exchanges such as Binance and Coinbase (NASDAQ: COIN) cleared. It also led to the arrest of two Binance executives – one escaped from custody and is still at largewhile others was released eight months later after pressure from American leaders.
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