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By Kingsley Ugochukwu
In a move to enhance regulatory oversight and investor protection, the Nigerian Securities and Exchange Commission (SEC) has introduced a new framework requiring all Virtual Assets Service Providers (VASPs), including crypto firms, to establish a physical office in Nigeria.
The Accelerated Regulatory Incubation Programme (ARIP) aims to fast-track the registration of VASPs pending the implementation of new Digital Assets Rules. The program emphasizes compliance and investor protection, with strict reporting and operational requirements imposed on participants.
According to a circular dated June 21, 2024, all operating and prospective VASPs, including crypto brokers and dealers, must complete the application process on the SEC ePortal within 30 days. The framework requires VASPs to establish a physical office in Nigeria, which will serve as a crucial aspect of their eligibility requirements.
The SEC’s move comes as the rules on Digital Assets Issuance, Offering Platforms, Exchange, and Custody undergo an amendment process. By bringing VASPs under the ARIP, the SEC seeks to ensure that these entities operate within a regulated environment, mitigating potential risks and protecting investors.
Non-compliance with the new framework will attract significant fines, emphasizing the SEC’s commitment to enforcing regulatory standards in the virtual assets space.
This development marks a significant step in Nigeria’s efforts to regulate its burgeoning crypto market, promoting a culture of compliance and investor protection. As the regulatory landscape continues to evolve, stakeholders are advised to stay informed and adapt to the changing requirements.
The establishment of a physical office in Nigeria is a critical step towards ensuring that VASPs operate within a transparent and regulated environment, ultimately contributing to the growth and development
