On June 21, the SEC of Nigeria announced the need for cryptocurrency firms operating in the country to re-register their activities. Otherwise, they face coercive measures.
The new registration is related to changes in the rules for issuing digital assets, providing platforms, exchanges and storage in relation to virtual asset service providers (VASPs).
"All current and potential VASPs are required to visit the SEC electronic portal to complete the application process no later than 30 days from the date of this circular," the statement said.
In 2023, Nigeria took second place in the global cryptocurrency adoption ranking according to Chainalysis, despite the current strict policy towards the industry.
Regulators' skepticism became especially noticeable in early 2024, when the Nigerian authorities accused a number of cryptocurrency exchanges of participating in money laundering and negatively influencing the exchange rate of the national currency.
In particular, the case against Binance continues to be considered. Against the background of this trial, the SEC proposed to increase registration fees for crypto companies by 400%.
The agency is now planning to develop a pilot program for an authorized liquidity pool, including tokenized bonds and deposits.
Recall that the Central Bank of Nigeria has repeatedly made contradictory statements regarding the crypto market. In 2017, the regulator stated that it could not control or regulate bitcoin. In 2021, he banned banks from servicing crypto exchanges, and in 2023 he lifted this restriction.
At the end of April, the central bank denied a request to block the bank accounts of crypto exchange customers.
In May, a number of Nigerian fintech companies warned customers against conducting cryptocurrency transactions through their services, threatening to block accounts.