The Nigerian Securities and Exchange Commission (SEC) has introduced a new program to streamline the registration process for virtual asset service providers (VASPs).
Accelerated Regulatory Incubation Program (ARIP)
The ARIP is a 30-day window for VASPs to complete their registration requirements. It’s open to both existing and prospective VASPs in Nigeria.
Registration Deadline
VASPs that fail to register during the ARIP period will face prosecution from the SEC.
Background
In March, the SEC increased the registration fees for VASPs from $20,161 to $100,806. This raised concerns about reduced business participation but also promoted financial stability among VASPs.
SEC’s Stance on Crypto
The SEC’s new director-general, Emomotimi Agama, has a crypto-friendly reputation. However, he has also taken a hard stance against the use of the Nigerian Naira on crypto exchanges.
Strict Regulations Ahead
The ARIP program, coupled with the registration fee hikes, suggests that Nigeria is adopting a stricter approach to regulating cryptocurrencies.
Nigeria’s Crypto Hub Status
Nigeria remains one of the fastest-growing crypto hubs in the world, with 10.3% of the population actively owning cryptocurrencies.
