SEC Proposes N1 Million Limit for Retail Crypto Investors

The Securities and Exchange Commission (SEC) of Nigeria has proposed new regulations for retail investors in the digital asset market, introducing a cap of N1 million per issuer and an annual limit of N10 million for investments. These proposed limits are part of the SEC’s Proposed Rules on Digital and Virtual Asset Operations, Custody, and Markets, which aim to create a comprehensive regulatory framework for digital asset issuance, trading, and custody in Nigeria.

The measures are designed to strengthen investor protection, requiring Digital Asset Offering Platforms to implement systems that monitor investment limits, including investor categorization and net-worth assessments. Institutional and high-net-worth investors may be exempt from these limits.

The SEC's initiative reflects Nigeria's expanding regulatory framework for digital assets, which are increasingly integrated into various financial activities. Approximately 26.3 million Nigerians, nearly a quarter of the adult population, are reported to regularly hold or transact with digital assets.