SEC sets N30 million registration fee, up to N2 billion capital for crypto firms

The Securities and Exchange Commission (SEC) has issued a wider crypto regulatory framework, proposing new registration fees and capital requirements for all digital assets providers in the country.

Under the proposed Rules on Digital and Virtual Asset Operations, Custody and Markets, Digital Asset Exchanges (DAXs), Digital Asset Custodians (DACs), Digital Asset Platform Operators (DAPOs), Digital Asset Offering Platforms (DAOPs) and Real World Asset Tokenisation Platforms (RATOPs) would each pay a N30 million registration fee.

The proposed charges come alongside significantly higher capital requirements for operators, reflecting the SEC’s broader attempt to establish prudential and operational requirements for businesses participating in Nigeria’s digital asset ecosystem.

Under the framework, DAXs and DACs would each require minimum capital of N2 billion, while DAPOs, DAOPs and RATOPs would require N500 million each. VASPs would have a minimum capital requirement of N200 million.

SEC’s proposal comes as the latest in the series of government policies targeting the crypto market, starting from the Presidential Order on Virtual Assets to the guidelines on virtual assets taxes recently released by the Nigeria Revenue Service (NRS).

What the SEC is saying

The SEC also proposes that regulated entities maintain a fidelity insurance bond covering at least 25% of their minimum paid up capital.

• Beyond the registration charge, applicants would be required to pay a N100,000 processing fee and a N300,000 application fee.
• Entities seeking to operate under the SEC’s Accelerated Regulatory Incubation Programme (ARIP) would also pay a N200,000 initial assessment fee and a N2 million ARIP application fee.

The framework also introduces ongoing supervisory charges linked to the turnover of regulated entities.

• A DAX operating under ARIP would pay a supervisory fee of 0.015% of adjusted turnover, while other entities under ARIP would pay 0.0075%.

Following full registration, the supervisory fee would rise to 0.025% of adjusted turnover for DAXs and 0.015% for other regulated entities.

Local presence now mandatory

Under the new framework, the SEC stated that any entity seeking registration must be incorporated in Nigeria (absent specific SEC approval otherwise), maintain a registered office in the country, and have its Chief Executive Officer, Managing Director or equivalent principal officer resident in Nigeria.

• “No person shall conduct any digital or virtual asset business, service, function or activity in Nigeria, or targeted at persons resident in Nigeria, unless registered, approved or authorised by the Commission in accordance with these Rules,” the Commission stated.

The SEC added that such an entity comply with the Nigerian Code of Corporate Governance, the Commission’s corporate governance requirements and any other applicable governance standard.

According to the framework, a foreign stablecoin issuer seeking recognition to operate in Nigeria must appoint or maintain a local representative, demonstrate authorisation in an acceptable foreign jurisdiction, and submit to Nigeria-specific reserve, liquidity and redemption-support conditions the Commission may prescribe.

The framework also mandates registration under the Accelerated Regulatory Incubation Programme (ARIP), for all companies seeking to operate in the country’s crypto market.

• “Except as otherwise approved by the Commission, an entity seeking registration under these Rules shall apply through the which shall serve as a pre-registration assessment and supervisory framework,” it stated.

Get up to speed

The new framework builds on other recent policy moves targeted at regulating the crypto market.

• Just last month, President Bola Tinubu signed the Presidential Executive Order on Virtual Assets Coordination, 2026, establishing a new framework to coordinate the regulation of cryptocurrencies, stablecoins, tokenised assets, and other digital assets across government agencies.
• Weeks after that, the Nigeria Revenue Service (NRS) also released new Guidelines on the Taxation of Virtual Assets targeting companies, individual taxpayers, Virtual Asset Service Providers (VASPs), peer-to-peer (P2P) marketplace operators, and other participants in Nigeria’s digital asset ecosystem.
• Before that, the Securities and Exchange Commission (SEC) had intensified efforts at granting approval in principle to crypto exchanges under its Accelerated Regulatory Incubation Programme (ARIP).

In the latest development under the SEC regulatory sandbox, the Commission has cleared three additional Virtual Asset Service Providers (VASPs) for admission into its ARIP, bringing the number of crypto firms under the regulatory sandbox to 14.

What you should know

In a separate but similar development targeting the crypto ecosystem, the Central Bank of Nigeria (CBN) recently opened applications for the second cohort of its Regulatory Sandbox Programme, introducing dedicated tracks for virtual asset service providers and data-enabled financial services.

Applications for the second cohort opened on August 12, 2026, and is expected to close on August 31, 2026, according to a statement signed by Hakama Sidi Ali, Acting Director, Corporate Communications and Investor Relations Department at the CBN.

The VASP Track will support innovations involving virtual assets, stablecoins, payments, settlement, custody, wallets and related financial infrastructure that require supervised live testing.