Despite the Central Bank of Nigeria (CBN) lifting restrictions on Nigerian banks for cryptocurrency transactions, the crypto licensing requirements set by the Nigerian Securities Exchange Commission (SEC) are expected to lead to a significant reduction in local crypto exchanges, according to Nigerian crypto analyst Rume Ophi.
Ophi, in an interview with Cointelegraph, highlighted that the demanding upfront capital requirement of 500 million naira ($556,620) is a barrier for many local exchanges, potentially favoring primarily foreign exchanges to operate in Nigeria.
The SEC’s May 2022 document, “New Rules on Issuance, Offering Platforms and Custody of Digital Assets,” outlines guidelines for cryptocurrency service providers in Nigeria, emphasizing the need for exchanges to secure a virtual asset service provider (VASP) license by adhering to application processing requirements and associated fees.
