Regulation
Nigeria’s SEC Issues Notice to Onboard VASPs in 30 Days Due to ‘Current Realities’ – BitKE
Nigeria’s Securities and Exchange Commission (SEC) has issued a notice to amend its rules on digital asset issuance, offering platforms, trading and custody.
The notice, posted on the organization’s website on June 21, 2024, added that the SEC was opening a special onboarding window for such companies.
“The Commission hereby provides a special space for the onboarding of virtual asset service providers [“VASPs”] marked Accelerated Regulatory Incubation Program [“ARIP”]”, we read in the circular.
“With this circular, all operational and potential VASPs are invited to visit the SEC electronic portal complete the application process no later than 30 days from the date of this Circular.”
After the 30-day period, the Commission indicated that it would take enforcement action against any operational VASP that did not comply with the directives.
Last month [May 2024]players in the local tech ecosystem speculated that authorities were prepare stricter regulations for cryptocurrency exchanges. This comes after the National Security Advisor (NSA) classified cryptocurrency trading as a matter of national security.
🇳🇬RULES | Local traders expect Nigeria to ban peer-to-peer cryptocurrency trading soon
Already three Nigerian fintech startups – Moniepoint, Paga and Palmpay – will block the accounts of customers who trade in cryptocurrency and report such transactions to law enforcement…. pic.twitter.com/2pk9AjrxWJ
— BitKE (@BitcoinKE) May 6, 2024
Exchanges operating in the country have come under scrutiny as authorities believe crypto platforms facilitate speculation and potential manipulation of exchange rates. At the end of February 2024, the government ordered several services, including Coinbase, Quidax, and Binance, to halt operations.
REGULATION | Cryptocurrency exchanges to halt StableCoin sales in Nigeria amid apparent crackdown
“There was a cryptocurrency founders meeting on Tuesday [February 27 2024] morning, and some of them agreed to suspend operations on their platform,” a person present at that meeting told a local… pic.twitter.com/iiYBuYrpOu
— BitKE (@BitcoinKE) February 29, 2024
Binance is in the eye of the storm, accused of money laundering and tax evasion along with 2 of its employees. Olayemi Cardoso, governor of the Central Bank of Nigeria (CNB), said that “$26 billion passed through Binance Nigeria from sources and users we cannot identify.”
However, the Nigerian Federal Internal Revenue Service (FIRS) did so dropped tax evasion charges against Binance officials Tigran Gambaryan and Nadeem Anjarwalla.
🇳🇬RULES | Nigerian Revenue Agency drops tax evasion charges against Binance officials
Look also
Next, Binance, which supposedly had an untaxed turnover of over $20 billion in Nigeria in 2023 alone, according to Nigerian Information Minister, Idris Mohammed, will be… pic.twitter.com/XqvRrMgo16
— BitKE (@BitcoinKE) June 15, 2024
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