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Cryptocurrency developments continue to unfold rapidly. A recent announcement revealed that Nigeria’s securities watchdog proposed new regulations that could strike a blow to the country’s crypto industry, including a 400% increase in registration fees. This reflects the recent perspective of the country towards the cryptocurrency space, where further pressures may be on the horizon.
Pressure on Crypto Firms Persists
The proposed changes for crypto issuers, exchanges, and custody platforms involve a general increase in audit fees. The Securities and Exchange Commission (SEC) is proposing to change the application fee from 100,000 naira to 300,000 naira and the registration fee from 30 million naira, also considering a 150 million naira registration fee for crypto firms.
These proposals come as the Nigerian naira plummets to record lows against the dollar and the government accuses the crypto industry of facilitating illegal capital flight. Earlier this month, reports emerged that the SEC had updated its guidelines for crypto service providers in the country.
Crypto Exchange Binance in the Crosshairs
As the government takes action against crypto firms, it specifically targets the cryptocurrency exchange Binance. Nigerian authorities accuse Binance of manipulating the naira exchange rate, and reports suggest that two Binance executives have been detained, with the firm potentially facing severe penalties.
The Nigerian SEC also proposes to double the minimum paid-up capital for relevant crypto service providers, setting this figure at 1 billion naira.
The Nigerian SEC refers to these rules as a “restructuring” and claims that it takes into account the suggestions of industry stakeholders, especially in light of recent discussions with the Central Bank of Nigeria, aiming to bring clarity to the market. However, from an external perspective, these developments are seen as pressure on the cryptocurrency world.
The activity in Nigeria’s crypto sector could lead to significant debates both within the industry and nationwide. Yet, the ultimate goal of the government and regulators, and how such regulations will affect the sector, remains unclear. All eyes are on the developments that will unfold in the coming days.
