The Nigerian Securities and Exchange Commission’s (SEC) crypto licensing requirements need reworking according to local crypto experts. The existing guidelines for virtual asset service providers (VASP) favor foreign exchanges and make it difficult for local players to obtain licenses.
Nigerian crypto analyst Rume Ophi in a recent interview on X space, says the high minimum capital requirement of 500 million naira ($556,620) prices out local exchanges. Supporting this view, Web3 legal representative Kue Barinor Paul says Nigerian crypto firms will likely have to merge just to meet the SEC license criteria.
Both experts urge the SEC to revise the framework to be more inclusive of indigenous crypto exchanges. The National Assembly also needs to get involved to ensure SEC regulations match economic realities.
Though Nigeria ranks highly for crypto awareness and adoption, the ban lift on banks serving crypto firms has yet to spur expected foreign investment. Friendlier SEC rules could help local exchanges thrive and grow the nation’s crypto economy.
