Nigeria has announced a set of proposed regulations that could significantly impact its cryptocurrency industry. The securities authority is suggesting a substantial hike in registration costs for crypto-related businesses, with a possible fourfold increase for initial registration fees. This move mirrors the government’s increasing scrutiny of the crypto sector, potentially signaling further challenges ahead.
Regulatory Hikes Proposed for Crypto Entities
Under the new guidelines, crypto issuers, trading platforms, and custodial services could see a sharp rise in both application and audit charges. The Nigerian Securities and Exchange Commission is considering raising application fees from 100,000 to 300,000 naira and suggesting a hefty registration fee of up to 150 million naira for cryptocurrency enterprises.
This regulatory pushback coincides with the Nigerian naira’s depreciation and accusations from the government that cryptocurrencies are contributing to unlawful capital flight. Earlier, the SEC updated its regulations for crypto service providers, indicating tighter control of the sector.
Binance Faces Government Scrutiny
In a targeted move, Nigeria is placing the popular cryptocurrency exchange Binance under the microscope. Accusations have surfaced against Binance for allegedly influencing the naira’s value, leading to the reported detention of two of its executives and potentially severe repercussions for the company.
Additionally, the Nigerian SEC is considering doubling the necessary paid-up capital for crypto service providers to 1 billion naira. While the SEC describes these adjustments as restructuring efforts that consider industry feedback and dialogues with the Central Bank of Nigeria, external observers perceive these measures as mounting pressure on the cryptocurrency industry.
The unfolding situation in Nigeria’s cryptocurrency sector is poised to prompt significant discussions within the local industry and on a national level. The intent and potential impact of these newly proposed regulations on the market are still uncertain, with developments closely watched by industry participants and observers.