Nigeria’s SEC is Proposing A 400% Surge in Registration Fees For Crypto Firms

According to a notice released on Friday, Nigeria’s securities and exchange commission (sec) has suggested a 400% rise in registration fees for cryptocurrency firms as part of a broader crackdown on the sector.

The proposed changes to the regulations governing crypto issuers, exchanges, and custody platforms also entail increases in all supervision fees.

Instead of the current 100,000 naira ($64) application fee and a 30 million naira registration fee, the Securities and Exchange Commission (SEC) now proposes a 300,000 naira application fee and intends to impose a 150 million naira registration fee on crypto firms.

The proposals come as the Nigerian naira weakens to record lows against the dollar, with the government blaming the crypto industry for facilitating illegal capital outflows. Earlier this month, reports surfaced that the SEC was updating its guidelines for crypto service providers in the country.

Despite taking action against numerous crypto firms, Nigerian officials have specifically targeted exchange platform Binance, alleging that it has been manipulating the naira exchange rate. Two Binance executives have been detained, and the government is reportedly contemplating imposing substantial penalties on the firm.

Additionally, the SEC has proposed doubling the minimum paid-up capital requirement for prospective crypto service providers to 1 billion naira. The proposals “to rearrange” the rules are to “provide clarity to the market as well as to incorporate suggestions from industry stakeholders particularly with regards to the recent engagements with the [central bank of Nigeria],” the SEC said.