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The Nigerian virtual asset and cryptocurrency space has been the subject of regulatory scrutiny in recent times. The Securities and Exchange Commission (SEC or the Commission) is keen to ensure the safety of investors in the space, while encouraging innovation. To achieve this objective, the SEC has undertaken several actions this year.
4 September 24
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On 15 March 2024, the Commission published proposed amendments to its existing Rules on the Issuance, Offering Platforms, and Custody of Digital Assets. The draft amendments aim to incorporate and clarify additional registration requirements for virtual asset service providers in Nigeria. Pending the conclusion of these amendments and the introduction of new digital assets rules, the Commission on 21 June 2024 issued A Framework on Accelerated Regulatory Incubation Program (ARIP) for the Onboarding of Virtual Assets Service Providers (VASPs) and other Digital Investments Service Providers (DISPs) (the ARIP Framework).
The ARIP Framework was introduced to create a pre-licensing framework to onboard VASPs and DISPs prior to the introduction of the new Digital Asset Rules. The framework is also aimed at allowing the Commission further understand various digital asset business models in order to enhance and properly inform its regulations.
In a recent development, on 29 August 2024, the SEC announced that it had granted Approvals-in-Principle (AIP) to two (2) digital asset exchanges to commence operation under the ARIP. Additionally, the Commission announced the admission of five (5) firms (four digital asset offering platforms and a digital asset custodian) to test their models and technology under the SEC’s Regulatory Incubation (RI) Program.
In this alert, we examine the implications of the Commission’s recent announcement for participants in Nigeria’s virtual asset space.
Click here to download and read the full alert.
Should you have any questions regarding the information in this legal alert, please do not hesitate to contact Ajibola Asolo.
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Contributors
1. Bukola Akinsulere – Senior Associate
2. Ayomide Awoyemi – Associate