Nigeria SEC Ruling May Stop Local Exchanges from Operating

Nigeria's SEC crypto licensing may limit local exchanges, says analyst Rume Ophi. The high cost of meeting the SEC's requirements, including a minimum capital of $556,620, may favor foreign exchanges operating in Nigeria, reducing local players.

In May 2022, the Nigerian SEC released guidelines for crypto service providers, outlining the process for obtaining a virtual asset service provider (VASP) license. This includes application processing and registration fees.

Despite Nigeria having a highly crypto-aware population, the SEC's regulations and previous banking restrictions have slowed crypto investment in the country. With the Central Bank of Nigeria lifting its ban, there's hope for increased foreign investment and local job opportunities in the crypto and Web3 sectors. Analyst Rume believes these changes could boost Nigeria's position in the global crypto market.