Nigeria’s ₦2 billion capital requirement puts crypto exchanges at a crossroads
- The SEC has raised the minimum capital requirement for digital asset exchanges to ₦2 billion.
- The SEC has implemented licensing frameworks for virtual asset service providers (VASPs).
- The SEC has classified certain crypto assets as securities and licensed two crypto exchanges.
While the SEC's intention to enhance market integrity through higher capital requirements is commendable, the execution appears flawed. A one-size-fits-all approach may stifle competition and innovation in Nigeria's vibrant crypto market. Engaging with industry stakeholders to develop tailored regulations could yield better outcomes for both consumers and businesses.
