Update in Nigerian Crypto Regulations
Nigerian regulators are requiring Virtual Asset Service Providers (VASPs) to update their applications within 30 days to comply with new rules regarding digital asset issuance, offering platforms, exchange, and custody. The Nigerian Securities and Exchange Commission (SEC) is implementing these changes to enhance the regulatory framework for digital asset markets. As part of the update, the SEC has introduced the Accelerated Regulatory Incubation Programme (ARIP) to assist VASPs in aligning with the new regulations.
Transition from Ban to Taxation
Since 2021, Nigeria has shifted its approach to cryptocurrencies from a ban to taxation. Despite initial concerns over money laundering and terrorism financing leading to a ban on cryptocurrency transactions, the government has opted for a taxation policy in response to the growing adoption of cryptocurrencies in the country. Various regulatory actions and discussions between the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC) have shaped Nigeria’s evolving stance on cryptocurrencies.
