Nigeria’s Securities and Exchange Commission (SEC) has put forth a proposal for a substantial increase in registration fees for cryptocurrency firms, marking a significant escalation in the country’s crackdown on the sector. According to a notice published on Friday, the proposed amendments to the rules governing crypto issuers, exchanges, and custody platforms include substantial hikes in all supervision fees.
Previously, crypto firms were required to pay a 100,000 naira ($64) application fee and a 30 million naira registration fee. However, under the new proposal, the SEC is seeking to raise the application fee to 300,000 naira and intends to charge crypto firms a staggering 150 million naira registration fee.
These proposals come at a time when the Nigerian naira has been weakening to record lows against the dollar, with the government attributing the decline to the crypto industry, which it accuses of facilitating illegal capital outflows. Reports emerged earlier this month indicating that the SEC was in the process of updating its guidelines for crypto service providers in the country.
While the government has taken action against numerous crypto firms, particular attention has been directed towards the exchange platform Binance. Authorities have accused Binance of manipulating the naira exchange rate and have detained two of the platform’s executives. Additionally, hefty penalties against the firm are reportedly under consideration.
In addition to the fee hikes, the SEC has also proposed doubling the minimum paid-up capital requirement for prospective crypto service providers to 1 billion naira. The Commission stated that these proposed changes aim to “rearrange” the rules and provide clarity to the market, incorporating feedback from industry stakeholders, particularly in light of recent engagements with the Central Bank of Nigeria.
