The Nigerian SEC has sharply raised minimum capital requirements for digital asset firms, with offering platforms now needing about $704,000 and exchanges and custodians $1.4 million. Experts describe new capital requirements as “anti-innovation,” and warn that they could drive talent abroad.
Significant Hikes in Capital DemandsRume’s remarks followed the Nigerian SEC’s unveiling of the revised requirements, which in some instances more than doubled the capital operators must provide. The regulator maintains that the review is necessary to strengthen market resilience, enhance investor protection and align capital adequacy with the evolving risk profiles of market activities.
Rume criticized the steep increases, accusing the SEC of acting unilaterally. He noted that these moves potentially contradict the Nigerian government’s pledge to foster an enabling environment for its tech-savvy youth. He suggested that Nigerian regulators should look to the U.S. model, where industry players like Coinbase are actively involved in the legislative process.
BICCON concluded by reaffirming its openness to constructive dialogue with regulators to ensure Nigeria remains a globally competitive and well-regulated digital asset market.
FAQ What changes did Nigeria’s SEC announce? The SEC raised minimum capital for digital asset firms, with some thresholds more than doubling. How much must exchanges and custodians hold now? They are required to maintain $1.4 million in capital under the new rules. Why does the SEC say the increases are needed? The regulator argues that they strengthen market resilience and enhance investor protection. What concerns have industry voices raised? Experts warn the rules may stifle innovation and reduce Nigeria’s global competitiveness.
