SEC Proposes N2bn Capital Requirement for Crypto Firms

The Securities and Exchange Commission (SEC) has proposed new regulatory requirements for Nigeria's digital asset industry, which include a N30 million registration fee and a minimum capital threshold of N2 billion for Digital Asset Exchanges (DAXs) and Digital Asset Custodians (DACs). Other proposed capital requirements include N500 million for Digital Asset Platform Operators (DAPOs), Digital Asset Offering Platforms (DAOPs), and Real World Asset Tokenisation Platforms (RATOPs), and N200 million for Virtual Asset Service Providers (VASPs).

Additionally, applicants must pay a N100,000 processing fee and a N300,000 application fee. Firms entering the SEC’s Accelerated Regulatory Incubation Programme (ARIP) would incur a N200,000 initial assessment fee and a N2 million application fee.

The SEC also suggests that regulated entities maintain a fidelity insurance bond covering at least 25% of their minimum paid-up capital. Applications for these regulations opened on August 12 and will close on August 31, 2026.

Experts express that while these measures could enhance investor protection, they may also drive smaller operators out of the formal sector due to high compliance costs.