Nigeria's SEC proposes that crypto exchanges serving Nigerian users register locally with ₦2B capital, cold storage mandates, and tiered stablecoin reserves. Comments due Sept. 3.
Nigeria's Securities and Exchange Commission published a proposed rule on Aug. 20 that would force crypto firms serving Nigerian users to register locally, hold minimum capital of ₦2 billion, and meet strict custody and stablecoin reserve requirements. Comments close Sept. 3.
The scope covers any digital asset business reaching Nigerian residents, including offshore exchanges that target Nigerian investors via apps or websites. Those firms would need to register with the SEC, incorporate inside Nigeria unless an exception applies, maintain a registered office in the country, and appoint a local chief executive or equivalent officer.
Digital Asset Exchanges and Custodians face the heaviest capital requirement: ₦2 billion minimum, plus a ₦30 million registration fee and a fidelity insurance bond covering 25% of that capital floor – an additional ₦500 million. Other platform types – Digital Asset Platforms, Digital Asset Offering Platforms, and Real World Asset Tokenization Offering Platforms – must hold ₦500 million in capital with the same ₦30 million fee. Virtual Asset Service Providers need ₦200 million and a ₦15 million fee.
For custodians, the SEC proposes that 80% of all client digital and virtual assets remain in cold storage at all times, unless the SEC specifies a different percentage. That leaves a limited slice for hot or warm wallets to meet daily operations.
Stablecoin issuers get tiered collateral requirements. Naira-backed and commodity-backed tokens must maintain 100% backing. Foreign currency-backed tokens need 120%. Crypto-backed stablecoins, the riskiest category given volatility, face a collateral range of 150% to 200% depending on liquidity and price stability of the underlying assets. Foreign stablecoin issuers targeting Nigerian users must appoint a local representative and comply with the SEC's prudential rules, including maintaining adequate reserve and liquidity levels to support redemption.
The public comment window runs until Sept. 3. The SEC will review feedback before final rules take shape. No implementation date has been confirmed.
Nigeria is one of the largest crypto markets on the continent by volume and user count. Peer-to-peer trading has historically been large in the country, partly because formal access to foreign currency has been restricted. The proposal would bring more of that activity under formal oversight.
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