Nigerian SEC announces New Compliance Program for Cryptocurrency Exchanges

The Nigerian Securities and Exchange Commission (SEC) has today announced that its rules on digital asset issuance, offering platforms, exchange, and custody have been amended. 

The SEC published a circular notice titled ‘Framework on Accelerated Regulatory Incubation Program (ARIP) for the Onboarding of Virtual Asset Service Providers (VASPs)’ on its website to the public outlining its plans. It stated that “this notice from the Securities and Exchange Commission ("the Commission") informs the public that revisions are being made to the Rules on Digital Assets Issuance, Offering Platforms, Exchange, and Custody. The amendment's goal is to expand the scope of regulation in line with current realities. 

By this order, the Commission establishes a dedicated onboarding window for Virtual Assets Service Providers (or "VASPs") under the Accelerated Regulatory Incubation Program (or "ARIP"). This circular directs all VASPs, both current and prospective, to visit the SEC ePortal and complete the application process by the date of this circular, which is 30 days away. Kindly go to the Commission's website to obtain thorough instructions regarding the ARIP Framework. Following that, the Commission will start taking enforcement action against any operating VASP that disobeys the instructions in this circular, the statement read. 

On the SEC website, it is stated that the purpose of the ARIP is to expedite the onboarding of digital investment service providers (DISPs) and virtual asset service providers (VASPs) who wish to register with the Commission.

The SEC developed a new AML/CFT/CPF onboarding manual for licensing or registration and on-going screening of digital and VASP beneficial owners to ensure that criminals are not registered as operators in the capital market," stated a portion of the notice issued by the SEC on March 4. With these precise guidelines in place, the SEC is prepared to work with legitimate VASPs. The SEC further stated that revisions to its regulations were being made in response to discussions with the Central Bank of Nigeria.

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