Wed, July 17

Nigerian SEC Proposes Significant Fee Hikes for Crypto Exchanges

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  • A whopping one million naira ($620) is now required as processing fee.
  • The purpose of these revisions, according to the SEC, is to increase transparency.

The SEC in Nigeria has suggested an increase in the registration cost for cryptocurrency exchanges from 30 million naira ($18,620) to 150 million naira ($93,000), as part of an update to the regulations that govern platforms providing crypto services.

According to the SEC, the purpose of the proposed amendments was to clarify things and include feedback from those involved in the business, “particularly with regard to the recent engagements with the CBN [Central Bank of Nigeria].” 

Significant Hike

On Friday, March 15, 2024, the Nigerian SEC proposed revising the regulations that it had first published in May 2022, which applied to all providers of crypto and digital assets. The application price for digital asset exchanges, offering platforms, and custodians has been increased from 100,000 naira ($62) to 300,000 naira ($186) under the revised regulations.

Moreover, a whopping one million naira ($620) is now required for processing, up from 300,000 naira ($186). Also, a similar 400% increase from 30 million naira ($18,620) to 150 million naira ($93,102) is the registration cost.

The purpose of these revisions, according to the SEC, is to increase transparency and integrate feedback from relevant parties in the sector. Furthermore, they embrace insights acquired from previous meetings with the Nigerian Central Bank.

Some have questioned the 500 million naira ($310,343) paid-up capital requirement, even though the SEC claims that industry stakeholders contributed to the proposed adjustments. They claim that local enterprises would be disadvantaged due to this hefty cost, while foreign corporations would mostly benefit.

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Content writer by profession. A crypto lover and has passion for writing. Follows the developments of digital currency right from its launch, years ago.