Nigeria’s Securities and Exchange Commission (SEC) has introduced a major change in how crypto-based companies would operate within the country. The officials have raised the minimum paid-up capital requirement for any digital asset operating in the country to ₦2 billion.
The news, which was announced on the 16th of January, marks the regulator’s first major revision of its framework in over 10 years. According to the SEC, this decision would help protect investors, improve market stability, and also align the Nigeria digital assets market with the global standards.
Nigeria’s SEC Tightens Oversight on Crypto-based Firms
The report was shared by a local news outlet, and according to the details, Digital Assets Exchanges (DAXs) and Digital Assets Custodians are required to maintain a minimum paid-up capital of ₦2 billion, a significant increase from previous levels that they operated on.
On the other hand, virtual asset service providers (VASPs) will face capital requirements that range between ₦300 million and ₦1 billion, depending on the license their company is categorized under. The rule also extends to digital-focused operators such as robo-advisers, crowdfunding platforms, and other alternative investment managers. This shows that the SEC is interested and committed to creating tight oversight of how financial services in the tech space operate.
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The regulators shared that the reason for the revision on the thresholds of different FinTech platforms is because they plan to combat the growing risks linked to operator failure. By increasing capital requirements, the SEC believes that the firms will be better equipped to properly absorb losses, protect clients’ money, and also reduce risk within the capital market.
So far, different people involved in the crypto market space have raised their concerns about how this policy would impact smaller companies that are still in the growth phase. With a compliance deadline set for June 30, 2027, operators fear the higher capital bar could probably force local startups to close, merge with larger companies, downgrade their licenses, or shut down entirely.
While larger players may see the move as a step toward market maturity. In all, the SEC has clearly stated that any firm that fails to meet up with the new requirements by the deadline stands a risk of facing regulatory sanctions, including suspension or complete withdrawal of their registration.
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