Nigeria's SEC Orders Crypto Firms to Register Within 30 Days

Nigeria's Securities and Exchange Commission (SEC) has issued a directive to all cryptocurrency exchanges and digital assets traders operating in the country to re-register their businesses within the next 30 days. Failure to comply will result in enforcement actions.

This move is part of Nigeria's broader effort to regulate the digital assets trading landscape. The SEC stated that the new registration process is designed to amend its existing rules on digital assets issuance, trading platforms, exchanges, and custody for virtual asset service providers (VASPs).

Nigeria SEC Imposes 30-Day Crypto Registration Deadline

"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 announced on its website.

Despite the Central Bank of Nigeria's (CBN) ban on banks facilitating crypto trading, which lasted for over two years, Nigeria has a robust cryptocurrency market. In 2022, it ranked 11th on Chainalysis' Global Crypto Adoption Index, jumping to second place in 2023.

Regulatory Risks and Market Outlook for Digital Assets

The SEC, like the CBN, has expressed reservations about digital assets, citing their "extreme risk" and potential for "total loss of investment." The SEC's skepticism intensified earlier this year when Nigerian authorities accused exchanges like Binance of facilitating money laundering and influencing foreign exchange rates.

The SEC recently cautioned against investing in DAVIDO, a meme coin promoted by Nigerian Afrobeats star Davido. However, the SEC itself is exploring tokenization and has plans to launch a pilot program for a permissioned liquidity pool featuring tokenized bonds and deposits.

The SEC emphasized that its current regulatory push is "in line with the current realities."