The Nigerian Securities and Exchange Commission (SEC) has recently amended its regulations governing Digital Asset Issuance, Offering Platforms, Exchange, and Custody.
The SEC stated in a public statement that it planned to amend these rules to create a stronger framework that addresses the unique challenges presented by digital asset markets.
In an official communication to the public, the SEC intended to revise these regulations to establish a more robust framework
A significant initiative introduced in this regulatory update is the Accelerated Regulatory Incubation Programme (ARIP), designed specifically for virtual assets service providers (VASPs).
This program offers VASPs a structured pathway to achieve compliance with the updated regulatory standards. SEC has implemented a dedicated onboarding process accessible through their ePortal, emphasizing the importance of timely compliance. VASPs must complete this onboarding within 30 days from the date of issuance of the circular.
SEC’s announcement also included a strong warning regarding non-compliance. The commission affirmed its readiness to take regulatory action against VASPs disregarding the new directives. This firm stance underscores the SEC’s commitment to enforcing regulatory discipline within the digital asset sector.
These regulatory updates follow the recent appointment of Emomotimi Agama as the new Director-General of the SEC. The amendments build upon the initial Rules on Digital Assets Issuance, Offering Platforms, Exchange, and Custody introduced in May 2022, representing a proactive step towards adapting regulatory frameworks to the evolving landscape of digital assets.
In conclusion, the SEC’s recent measures demonstrate a strategic effort to enhance regulatory transparency and oversight in Nigeria’s digital asset markets, ensuring operations adhere to a clearly defined and monitored framework that balances innovation with investor protection.
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