legal-document-to-plain-english-translator/”>Try Free Now: Legalese tool without registration

Find a LOCAL lawyer

# NigeriaÔÇÖs Securities and Exchange Commission (SEC) Proposes Amendment to Crypto Service Platform Rules

NigeriaÔÇÖs Securities and Exchange Commission (SEC) has recently proposed an amendment to the rules governing platforms offering crypto services. This proposal suggests a significant increase in the registration fee for crypto exchanges, from 30 million naira ($18,620) to 150 million naira ($93,000).

## AI legalese decoder: How it Can Help

The AI legalese decoder can assist in navigating the intricate legal language and requirements set forth by the SEC in their proposed amendments. By utilizing advanced AI technology, the legalese decoder can break down complex legal documents into simple and understandable terms, making it easier for crypto service providers to comprehend and adhere to the new regulations.

### SECÔÇÖs Rationale Behind the Proposed Changes

The SEC stated that these proposed amendments aim to provide clarity and incorporate feedback from industry stakeholders, particularly following engagements with the Central Bank of Nigeria. In May 2022, the Nigerian SEC initially issued rules and guidelines for all crypto and digital asset service providers, but on March 15, 2024, they suggested an amendment to these rules.

#### Updated Guidelines and Fee Adjustments

Under the updated guidelines, digital asset exchanges, digital asset offering platforms, and digital asset custodians will now be required to pay an application fee of 300,000 naira ($186), compared to the previous 100,000 naira ($62). Additionally, the processing fee has surged from 300,000 naira ($186) to 1 million naira ($620), while the registration fee has spiked by 400%, from 30 million naira ($18,620) to 150 million naira ($93,102).

##### Proposed Name Change for Rules and Guidelines

One of the proposed changes includes renaming the rules and guidelines from ÔÇ£New Rules on Issuance, Offering Platforms and Custody of Digital AssetsÔÇØ to ÔÇ£Rules on Digital Assets Issuance, Offering Platforms, Exchange, and Custody.ÔÇØ These amendments aim to enhance clarity and reflect input from industry stakeholders and recent discussions with the Central Bank of Nigeria.

###### Criticisms and Concerns

Despite the SEC attributing the proposed changes to input from industry stakeholders, some have criticized the 500 million naira ($310,343) paid-up capital requirement. Critics argue that this high fee may primarily benefit foreign firms and disadvantage local entities in the thriving Nigerian crypto economy.

## NigeriaÔÇÖs Growing Crypto Landscape and Economic Challenges

Nigeria has emerged as one of the fastest-growing crypto economies globally in recent years and was the second-largest economy in terms of crypto adoption in 2023. In August 2022, Nigeria was recognized as the most crypto-obsessed country globally based on Google searches for ÔÇ£cryptocurrencyÔÇØ or ÔÇ£buy crypto.ÔÇØ

### Economic Shifts and Challenges

According to the Financial Times, Nigeria shifted from its long-standing currency peg in June 2023, allowing the naira to trade freely. However, this decision led to record-high inflation levels, with consumer inflation rising for the 13th consecutive month to nearly 30% in January 2024, as reported by the National Bureau of Statistics.

#### Conclusion

As Nigeria navigates its evolving crypto landscape and economic challenges, the SECÔÇÖs proposed amendments to crypto service platform rules highlight the importance of staying informed and compliant with regulatory changes. Utilizing tools like the AI legalese decoder can help simplify complex legal requirements and aid crypto service providers in adhering to new regulations effectively.

legal-document-to-plain-english-translator/”>Try Free Now: Legalese tool without registration

Find a LOCAL lawyer

Reference link