New Policy Background and Core Requirements
Nigeria's Securities and Exchange Commission (SEC) has recently announced a major policy adjustment, raising the minimum capital threshold for digital asset exchanges and custodial institutions from the previous 500 million naira to 2 billion naira. This marks a significant step forward in Nigeria's regulatory approach to cryptocurrency assets.
Capital Requirements for Different Platforms
Under the new rules, digital asset offering platforms (DAOPs) and real-world asset (RWA) tokenization platforms must meet a minimum capital requirement of 1 billion naira, while digital asset intermediaries and related service providers must maintain capital between 300 million and 500 million naira.
Implementation Timeline and Compliance Pressure
The regulation requires all relevant platforms to adjust their capital structure by June 30, 2027, or face the risk of license suspension or revocation. This means many small and medium-sized platforms will face significant financial pressure, potentially accelerating industry consolidation.
Industry Impact and Future Outlook
The increase in capital thresholds is expected to have a profound impact on Nigeria's crypto asset industry. On one hand, larger platforms will gain a competitive edge. On the other, smaller players may be forced to exit or merge. In the long run, this move is likely to enhance overall industry stability and user confidence.