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Nigeria SEC proposes capital floor for crypto licensing
The proposal would require digital-asset exchanges and custodians to hold at least ₦2 billion in minimum capital and meet added custody and stablecoin reserve tests, with a comment deadline of Sept. 3.
Nigeria’s Securities and Exchange Commission has proposed new rules that would bring crypto businesses into its licensing perimeter when they operate in Nigeria, serve Nigerian residents, or target the country’s investors through digital channels, including offshore platforms. The SEC says the framework would raise the cost of serving Nigerian users by combining local-presence requirements with capital, custody, and stablecoin-reserve tests. The regulator published the proposal on Aug. 20 and opened a two-week public comment period, with the consultation deadline set for Sept. 3. The SEC page does not specify a cutoff time or time zone, and the measures remain proposals under consultation, not rules in force. The scope is written broadly enough to reach platforms based on who they serve, rather than only where a business is incorporated. Applicants generally would need to incorporate in Nigeria unless the SEC approves otherwise, maintain a registered office, and appoint a resident chief executive or managing director, along with resident sponsored individuals, while foreign entities could seek registration or authorization through SEC frameworks when conditions are met. The proposal sets different minimum capital levels by license class. Schedule I assigns ₦2 billion minimum capital to Digital Asset Exchanges and Digital Asset Custodians, with a separate ₦30 million registration fee for each, while Digital Asset Platforms and certain offering platforms are listed at ₦500 million, the general VASP category at ₦200 million, and the SEC would also require a fidelity insurance bond covering at least 25% of the stipulated minimum capital.