Under the revised regulatory framework, digital asset exchanges, offering platforms, and custodians would face substantial increases in application, processing, and registration fees. Application fees are set to rise from 100,000 Naira ($62) to 300,000 Naira ($186), while processing fees would increase from 300,000 Naira ($186) to 1 million Naira ($620). Most notably, the registration fee is slated to spike by 400%, soaring from 30 million Naira ($18,620) to 150 million Naira ($93,102).

The SEC emphasized that these proposed amendments were crafted to provide clarity and incorporate feedback from industry stakeholders, particularly following engagements with the Central Bank of Nigeria (CBN). Renaming the rules and guidelines from “New Rules on Issuance, Offering Platforms, and Custody of Digital Assets” to “Rules on Digital Assets Issuance, Offering Platforms, Exchange, and Custody” underscores the regulator’s commitment to adapting to the evolving crypto landscape.

Critics, however, have raised concerns about the potential impact of the proposed amendments. The suggested 500 million Naira ($310,343) paid-up capital requirement has sparked debate, with some arguing that it could disproportionately benefit foreign firms at the expense of local entities. Moreover, the proposal to double the minimum paid-up capital requirement for prospective crypto service providers to 1 billion Naira adds further scrutiny to the SEC’s regulatory overhaul.

However, critics have voiced concerns about the potential consequences of these proposed amendments. The suggested 500 million Naira ($310,343) paid-up capital requirement has sparked debate, with some arguing that it could disproportionately benefit foreign firms over local entities. Moreover, the proposal to double the minimum paid-up capital requirement for prospective crypto service providers to 1 billion Naira adds further scrutiny to the SEC’s regulatory overhaul.

These developments unfold against the backdrop of heightened scrutiny of cryptocurrency activities in Nigeria, with particular attention directed towards Binance, one of the world’s largest crypto exchanges. Nigerian authorities are closely monitoring Binance’s operations amid concerns over compliance with local regulations and potential risks to investors.

These developments unfold against a backdrop of heightened scrutiny of cryptocurrency activities in Nigeria, with particular attention directed towards Binance, one of the world’s largest crypto exchanges. Nigerian authorities have been closely monitoring Binance amidst concerns about regulatory compliance and investor protection.

As the cryptocurrency market continues to gain traction globally, regulators worldwide are grappling with how best to oversee this rapidly evolving sector. In Nigeria, where cryptocurrency adoption has surged in recent years, authorities are striving to strike a balance between fostering innovation and safeguarding investors.

While proponents argue that robust regulation is essential to mitigate risks and promote market integrity, opponents caution against stifling innovation and hindering the growth of the digital asset ecosystem. The SEC’s proposed amendments reflect ongoing efforts to adapt regulatory frameworks to the evolving dynamics of the crypto landscape, but the contentious nature of these revisions underscores the challenges inherent in regulating a nascent and rapidly evolving industry.

As Nigeria grapples with the complexities of regulating a rapidly evolving crypto market, stakeholders from all sectors are closely watching the outcome of these proposed amendments. The decisions made by the SEC will not only shape the future of cryptocurrency exchanges in Nigeria but could also have ripple effects on the broader global crypto landscape.