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Nigeria SEC issues VASP implementation notice within 30 days due to ‘current realities’ – BitKE

Posted on by darion

The Securities and Exchange Commission of Nigeria (SEC) has issued a notice to amend its regulations relating to the issuance of digital assets, offering platforms, exchanges and custody.

The notice published on June 21, 2024 on the organization’s website added that the SEC is opening a special onboarding window for such companies.

“The Commission hereby provides a dedicated window for the adoption of virtual asset service providers (“VASPs”) designated as the Accelerated Regulatory Incubation Program (“ARIP”).” – we read in the circular.

“Pursuant to this Circular, all existing and prospective VASPs are directed to visit the SEC ePortal to complete the application process no later than 30 days from the date of this Circular.”

After the 30 days have passed, the Commission has indicated that it will begin enforcement action against any operating VASP that fails to comply with the directives.

Last month (May 2024), players in the local tech ecosystem speculated that authorities were preparing more stringent regulations for cryptocurrency exchanges. This comes after the National Security Advisor (NSA) classified cryptocurrency trading as a national security issue.

Exchanges operating in the country have come under scrutiny as authorities believe crypto platforms facilitate speculation and potential manipulation of currency rates. In late February 2024, the government ordered several services, including Coinbase, Quidax, and Binance, to cease operations.

Binance found itself in the eye of the storm, accused of money laundering and tax evasion along with two of its employees. This was alleged by Olayemi Cardoso, Governor of the Central Bank of Nigeria (CNB). “$26 billion passed through Binance Nigeria from sources and users we cannot identify.”

However, the Nigerian Federal Inland Revenue Service (FIRS) dropped tax evasion charges against Binance officials Tigran Gambaryan and Nadeem Anjarwalla.

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