Nigeria Capital Regulation: SEC Raises Standards for Crypto Platforms

CoconutWaterBoy · 2026-01-30T19:15:52+00:00

Nigeria's Securities and Exchange Commission has raised capital requirements for digital asset institutions to enhance financial stability. Exchanges must now have a minimum of 2 billion naira, while other entities have varied requirements, reflecting stricter regulatory measures by authorities.

CoconutWaterBoy

2026-01-30 19:15:52

Abstract generation in progress

The Nigerian Securities and Exchange Commission has announced significant adjustments to its regulatory framework for the digital asset sector. The main novelty lies in the substantial increase in the capital required by Nigeria to operate in this segment, reflecting the authorities’ intention to strengthen the financial solidity of authorized institutions.

New Capital Requirements by Institution Type

Entities operating digital asset exchanges and custody services must maintain a minimum amount of 2 billion naira, approximately equivalent to $1.4 million. This figure represents a considerable increase from the previous requirement of 500 million naira, also surpassing the proposed 1 billion naira that had been considered earlier but later discarded.

For different categories, platforms dedicated to digital asset issuance (DAOP) and those specialized in tokenizing real-world assets (RWA) have been required to hold 1 billion naira. Meanwhile, intermediaries and providers of ancillary services within the digital asset ecosystem must have capital ranging from 300 million to 500 million naira, depending on the specific nature of their operations.

Compliance Timeline and Regulatory Consequences

Involved institutions have until June 30, 2027, to adapt their financial structures to these new Nigerian capital standards. Non-compliance with this obligation is not a trivial matter: authorities have established that organizations failing to conform could face temporary suspension of their activities or, in more severe cases, the permanent revocation of their operating licenses.

Context of the Regulatory Reform

This tightening of capital requirements marks a significant shift in Nigerian supervisory strategy. The previous threshold of 500 million naira was considered insufficient given the sector’s growth, while the intermediate proposal of 1 billion was revised upward, demonstrating a more rigorous stance by regulators towards institutional solidity and consumer protection in the digital asset market.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.