Nigerian Securities and Exchange Commission requires crypto firms to establish physical offices in the country
The Nigeria Securities and Exchange Commission (SEC) has introduced new guidelines for virtual asset service providers (VASPs), requiring them to have a physical presence in the country within the regulatory framework.
As per the recent announcement, VASPs must be incorporated entities and have offices in Nigeria to participate in the Accelerated Regulatory Incubation Programme (ARIP) designed to help crypto-based businesses comply with Nigeria’s regulations.
In addition to the local presence requirement, the SEC has specified that the CEO or managing director of these firms must reside in Nigeria to enhance accountability and regulation of cryptocurrency activities in the country.
The SEC has given existing and potential VASPs, including crypto brokers and dealers, a 30-day period to complete their applications through the SEC ePortal. Successful applicants under the ARIP will receive temporary approval to operate until the Digital Assets Rules are finalized.
During the application process, firms must submit sworn statements, detailed operational plans, and business models focused on investor protection. A processing fee of 2 million naira (approximately $1,277) is also required for application submission.
To ensure continued compliance, the SEC has implemented a comprehensive reporting system. ARIP participants must provide weekly and monthly trading statistics, quarterly financial reports, and incident reports as necessary.
The commission has established significant penalties for non-compliance, with unregistered commercial VASPs facing fines of at least 20 million naira ($12,776), and other digital investment platforms potentially incurring fines of 10 million naira ($6,388) or more.
The new regulations apply to all VASPs and token issuers conducting business in Nigeria or serving Nigerian customers, including platforms that facilitate the offering, trading, exchange, custody, and transfer of digital assets.
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