Nigeria SEC Proposes ₦2 Billion Capital Floor for Crypto Exchanges

Nigeria’s Securities and Exchange Commission has proposed rules that would bring crypto businesses under its licensing perimeter when they operate in the country, serve Nigerian residents, or target the nation’s investors through digital channels. The plan, published Aug. 20 with a Sept. 3 comment deadline, would raise the cost of serving Nigerian users by combining local-presence requirements with capital, custody, and stablecoin-reserve tests. The SEC did not specify a cutoff time or time zone for comments.

The scope clause is broad enough to reach offshore exchanges based on whom they serve, not just where they are incorporated. A digital-asset business falling under the rules would need SEC registration, approval, or authorization. Applicants generally would have to incorporate in Nigeria unless the Commission grants an exception, maintain a registered office, and appoint a resident chief executive along with resident sponsored individuals. The text also allows for foreign-entity registration through SEC frameworks when conditions are met.

Capital requirements vary by license class. Schedule I assigns the highest minimum paid-up capital – ₦2 billion – to Digital Asset Exchanges and Digital Asset Custodians, with a ₦30 million registration fee for each. Digital Asset Platforms, Digital Asset Offering Platforms, and Real World Asset Tokenization Offering Platforms are listed at ₦500 million capital with the same fee. The general VASP category is set at ₦200 million capital and a ₦15 million registration fee. Applicants would also need a fidelity insurance bond covering at least 25% of the stipulated minimum paid-up capital.

Custodians face an additional storage test. At least 80% of client digital and virtual assets must stay in cold storage unless the SEC sets another percentage. Hot and warm wallets are limited to operational needs.

Stablecoin issuers would have to meet tiered reserve floors. Naira-backed and commodity-backed tokens need at least 100% backing. Foreign-currency-backed tokens need 120%. Crypto-backed stablecoins start at 150%, with Schedule II setting a 150% to 200% collateral range based on volatility, liquidity, concentration, and collateral quality. Foreign stablecoin issuers targeting the Nigerian market would also need a local representative and must comply with reserve, liquidity, and redemption-support requirements the SEC prescribes.

The proposal is still under consultation. If adopted, it would force offshore providers serving Nigerian users to find a local compliance path, with exchanges and custodians facing the steepest capital test. The SEC’s move follows a broader global push to bring crypto firms under formal financial regulation. Separately, Mastercard has been testing a single-audit stablecoin compliance framework with Borderless.xyz, aiming to give regulators a standardized way to check reserve backing and redemption rules.