Nigeria’s SEC Mandates VASPs to Establish Local Offices for Framework Program Eligibility
Nigeria’s Securities and Exchange Commission (SEC) mandated on June 21 that all Virtual Asset Service Providers (VASPs), including cryptocurrency companies, establish offices in Nigeria as part of eligibility requirements under its Accelerated Regulatory Incubation Programme (ARIP).
This initiative is expected to expedite the registration and onboarding of VASPs ahead of the forthcoming Digital Assets Rules, focusing on compliance and investor protection.
The requirement also states that applicants must report customer complaints and emergent risks and be subject to SEC inspections, audits, and monitoring.
While regulations governing digital asset issuance, offering platforms, exchanges, and custody are being amended, VASPs are temporarily mandated to operate under the ARIP framework.
In addition to establishing a physical office, the CEO or managing director of these entities must reside locally.
They must also commit to operational readiness with live customer support and express readiness to apply for full registration as soon as the necessary rules are established. Products or services should address specific industry challenges or offer significant consumer benefits, ensuring investor safety.
The framework applies to entities conducting business in Nigeria or offering services to Nigerian consumers, encompassing platforms facilitating the offering, trading, exchange, custody, and transfer of digital assets.
The SEC intends to use ARIP to fast-track the onboarding of entities that have submitted applications or intend to register with the Commission. Qualified entities under ARIP can receive approval in principle from the SEC, pending the full implementation of the Digital Assets Rules.
VASPs under regulatory
