SEC mandates Nigerian offices for virtual asset companies under new regulation
- SEC orders all VASPs, including cryptocurrency companies, to establish offices in Nigeria as part of the eligibility requirement under ARIP.
- The initiative aims to accelerate VASPs' registration and onboarding for the new Digital Assets Rules, emphasizing compliance and investor protection.
- Non-compliance with the SEC's requirements will result in significant fines.
The SEC's Accelerated Regulatory Incubation Programme (ARIP) is a positive step towards regulating the cryptocurrency industry in Nigeria. By requiring VASPs to establish offices in the country and emphasizing compliance, the SEC aims to protect investors and ensure the industry operates within legal frameworks. However, the significant fines for non-compliance may pose challenges for smaller companies.
