In a recent update, the Nigerian Securities and Exchange Commission (SEC) has intensified its regulatory grip on Virtual Assets Service Providers (VASPs) with fresh rules and a strict deadline.
The move, which has become a focal of discussion among various crypto investors and enthusiasts, included a stringent 30-day deadline by the country's regulatory body for all VASPs to update their application processes.
Updated Rules For Virtual Assets Service Providers
On June 21, 2024, Nigeria's SEC took to its official website to inform the general public of amendments to the rules governing “Digital Assets Issuance, Offering Platforms, Exchange, and Custody.”
According to the notice, the amendment process aimed to expand the scope of regulation and streamline it with the realities the country currently faces.
Recall that in March, Nigeria, through its SEC, introduced new guidelines to license, inspect, and register Virtual Assets Service Providers operating within the country's marketplace, underscoring its decision to crack down on crypto service providers.
Interestingly, this regulatory shift came at a time when the country was tightening its grip on the digital market marketplace, heightened by Binance’s decision to stop offering Nigerian Naira (NGN) services within the country as a result of the legal challenges the company was facing as of then.
New Compliance Program Emerges
As part of this regulatory reform, the country’s SEC also launched a new compliance program known as the Accelerated Regulatory Incubation Programme (ARIP), a program specially designed for VASPs to help provide a way for them to comply with the new regulations.
The circular states: “By this Circular, all operating and prospective VASPs are as a result of this directed to visit the SEC ePortal to complete the application process no later than 30 days from the date of this circular.”
In conclusion, the new directives by the Nigeria regulatory body sum up the nation's stringent regulations on crypto platforms, which has culminated in several platforms halting operations in the West African country.
