- The minimum paid-up capital requirement is $556,620 (N500 million naira).
- Nigerian banks and financial institutions now have a set of rules to follow.
Several crypto analysts based in Nigeria, claim that the number of local crypto exchanges in the country will be drastically reduced due to the crypto license requirements imposed by the Nigerian Securities Exchange Commission (SEC). This is despite the fact that the Central Bank of Nigeria (CBN) has lifted restrictions on Nigerian banks that facilitate cryptocurrency transactions.
The minimum paid-up capital requirement is $556,620 (N500 million naira), making it unaffordable for many local exchanges to remain operating. Rather than fostering a balanced economy, this rule would force Nigeria to rely on foreign currencies.
Stringent Compliance
Nigerian banks and financial institutions now have a set of rules to follow when dealing with digital assets, and this document paves the way for crypto service providers to enter the market. By paying the necessary fees and completing the application procedure, exchanges may get a VASP license, as mandated by SEC rule.
Nigeria, the biggest economy in Africa, has the most cryptocurrency-aware populace in the world, according to a worldwide poll that included respondents from fifteen nations. Of the 154 nations studied for their cryptocurrency use and acceptance rates, Nigeria came in at number eight, according to Chainalysis’ 2020 Cryptocurrency Geography Report.
It would have been assumed that the country’s high rate of crypto adoption would have attracted more international investment in crypto, but that is not the case. The analysts stressed that the low investment rate was due to the prohibition on financial institutions providing services to cryptocurrency exchanges.
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