Local cryptocurrency specialists believe that the standards for crypto licenses set forth by the Nigerian Securities and Exchange Commission (SEC) should be revised. The current virtual asset service provider (VASP) restrictions hinder local players’ ability to obtain licenses and favor overseas exchanges.
In a recent interview with X Space, Nigerian cryptocurrency expert Rume Ophi claimed that local exchanges are priced out due to the hefty minimum capital requirement of 500 million naira ($556,620). Kue Barinor Paul, a legal counsel for Web3, concurs, stating that Nigerian cryptocurrency companies will probably need to combine in order to satisfy SEC licensing requirements.
Both analysts strongly advise the SEC to update the rules to better accommodate domestic cryptocurrency exchanges. To guarantee that SEC rules reflect the realities of the economy, the National Assembly must also become involved.
The restriction on banks servicing cryptocurrency startups has not yet resulted in the anticipated foreign investment, despite Nigeria’s high ranking for crypto awareness and usage. More lenient SEC regulations may foster the growth of regional exchanges and the country’s cryptocurrency sector.