The Nigerian SEC has in a new initiative accelerated processing for VASPs as well as improved their regulatory framework. This is in order to beef up the regulatory standard within the digital currency sector.
According to the SEC, this new initiative will serve as an amendment to existing rules and is aimed at improving the current regulatory framework to fit the existing complexities of the crypto industry in the country.
Announcements made by the Nigerian SEC in March were heavily altered Rules on Digital Assets Issuance Platforms, Exchange, and Custody. A critical point was the dramatic hike in fees kept by VASPs, and thus their registration price leapt from 30 million naira ($20,161 ) to 150 million: a 5-fold increase. This unexpected move even led people to believe (wrongly or rightly)that it might be detrimental for attracting entrepreneurs.
On June 21, the Accelerated Regulatory Incubation Program (ARIP) was launched. This new program ushers prospective and operating VASPs a 30-day window period to meet all regulatory requirements. Within this period, they must speedily complete all requirements thus ensuring full compliance across board otherwise, immediate prosecution awaits them
The rapid growth of cryptocurrency in Nigeria is heavily linked to the over 22million active youth who actively engage it. They make up approximately 10.3% of the population but they own and trade cryptocurrency.
The SEC has been stepping up its supervision and raising fees in a bid to try and rid the industry of scammers. In the long run this will be good for everyone.
