In a bold move, Nigeria’s Securities and Exchange Commission (SEC) has proposed a staggering 400% hike in registration fees for cryptocurrency firms. This comes as part of the country’s intensified scrutiny of the crypto sector.
The proposed amendments are not just limited to registration fees. They encompass a comprehensive overhaul of the fee structure for crypto issuers, exchanges, and custody platforms. The current application fee of 100,000 naira ($64) is set to triple to 300,000 naira. Moreover, the SEC plans to levy a hefty registration fee of 150 million naira, a significant jump from the current 30 million naira.
These proposals coincide with the Nigerian naira hitting record lows against the dollar. The government has pointed fingers at the crypto industry, accusing it of facilitating illegal capital outflows. Amidst these developments, there have been reports of the SEC updating its guidelines for crypto service providers.
The government’s crackdown on crypto firms has been particularly harsh on the exchange platform Binance. Accused of manipulating the naira exchange rate, Binance has found itself in hot water, with two of its executives detained and the firm facing potential heavy penalties.
In addition to the fee hikes, the SEC has proposed doubling the minimum paid-up (non-borrowed) capital requirement for crypto service providers to a whopping 1 billion naira.
The SEC has stated that these proposals aim to “rearrange” the rules to provide market clarity and incorporate feedback from industry stakeholders, especially in light of recent engagements with the Central Bank of Nigeria. This move signifies a pivotal moment in Nigeria’s approach to regulating the burgeoning crypto industry.
