Nigerian SEC to Increase Registration Fee for Cryptocurrency Exchanges
Nigerian SEC has increased fees for cryptocurrency exchanges applying for registration. The regulator recently updated their guidelines noting that custodial services providers to update the application fee of 300K naira or $186.
The fee has been updated or increased from a previous level of 100K naira or $62. As per a Cointelegraph article, the new fee change is a new suggested amendment.
Regulatory Agency Increases Registration Fee to $93k
As per this amendment, the regulatory agency has suggested a hike of registration fees from 30 million naira or $18,620 to 150 million naira or $93K. As part of the proposed changes, the SEC noted that it has provided clear instructions for industry participants.
The regulator further noted that these changes are in line with the recent communications with the Central Bank of Nigeria (CBN).
The African SEC issued an updated set of rules and guidelines for all digital asset services providers in May 2022. However, on 15th March 2024, the agency introduced new amendments to the same regulator guidelines.
As per the recent policy edits, digital asset platforms, trading services providers, custodians, and exchanges are under obligation to pay increased application fees as mentioned in the first paragraph.
Nigerian SEC to Introduce Clarity in the Crypto Sector
The SEC of Nigeria has noted that the recent fee changes or increases will bring more clarity for the incorporated firms operating within the digital asset sector. At the same time, this agency noted that these regulations are based on the recent comments issued by the CBN administrators. Expectedly, the firms operating in the industry have shared their reservations on the matter.
Cointelegraph notes that some stakeholders have taken up an issue with the 500 million naira or $310,343 paid-up capital requirements. At the same time, these participants have noticed that the increased rates of registration and application fees are going to favor foreign exchanges and work as a setback for local companies operating in the same sector.
Nigeria is one of the biggest economic contributors in Africa. The nation also records the fastest growth of digital asset trading volumes in the world during the last few years. In terms of cryptocurrency adoption, it was the second-largest economy in 2023.
In 2022, Nigeria ranked as the top nation in the world in terms of cryptocurrency Google searches. Google analytics reported the biggest search volumes for keywords such as cryptocurrency or buy crypto from Nigeria.
Consumer Inflation in Nigeria
A report published in Financial Times noted that Nigeria left the years-long fiat peg. This move resulted in Naira to trade freely in July, 2023. The nation had to deal with record inflation spikes shortly afterward.
In January 2024, consumer inflation reached a 13th-month high with a continuous 30% rise as per data projections from the National Bureau of Statistics for the first month of 2024.
Nigerian regulators are also pursuing legal action against Binance. On this account, President Biden has received various requests to speak with the Nigerian administration for release of Tigran Gambaryan.
Gambaryan is a Binance employee and former federal agent of the United States. Cointelegraph reported that the US Chamber of Digital Commerce sent a formal application via website on 15th March.
This plea demands Biden administration to initiate urgent diplomatic action to address the unjustified detention. The blog post has raised the concerns that under these circumstances any American entrepreneur working in a foreign territory especially in the digital asset sector could face unlawful detention.
The Chamber of Digital Commerce posted an update on social media noting that the detention is arbitrary and carried out without due process.
In the same way, the post claimed that this situation is a challenge against international laws and diplomatic dealings. The article noted that US awards $1 billion in financial aid to the nation every year as an ally state.
Detained Binance executives were apprehended after organizing a meeting with Nigerian officials. After an unsuccessful negotiation, the executives were apprehended by the National Security Agency of Nigeria. The arrests were made after Binance announced the exit on 5th March.
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