The Nigerian Securities and Exchange Commission (SEC) has mandated Virtual Asset Service Providers (VASPs) to update their applications within 30 days to comply with new digital asset rules. This is part of a broader regulatory update aimed at strengthening Nigeria’s cryptocurrency market oversight.
Historical milestones include Nigeria’s launch of the “eNaira,” the first central bank digital currency in Africa, and the shift from an initial banking ban to a taxation policy on cryptocurrency gains. This regulatory update introduces the Accelerated Regulatory Incubation Programme (ARIP), providing a structured pathway for VASPs to align with new standards.
Despite regulatory challenges, Nigeria remains a leader in cryptocurrency adoption, with transactions increasing by 9% year-over-year to $56.7 billion between July 2022 and June 2023. The coordinated efforts of the SEC and Central Bank of Nigeria (CBN) underscore the country’s commitment to responsibly regulating the virtual asset ecosystem.
These measures are strategically important as they aim to balance innovation with security, ensuring sustainable growth in Nigeria’s digital asset market.
