The Nigerian Securities and Exchange Commission (SEC) is proposing a significant fee increase for cryptocurrency firms registering in the country. The proposal, if approved, would see these firms facing a 400% increase in their registration fees.
Currently, digital asset service providers in the country pay around $1,200 USD to register with the SEC. However, the new proposal would increase this fee to about $6,000 USD. This is a part of the SEC’s wider aim to regulate the fast-growing crypto sector more effectively.
As cryptocurrency becomes more popular in Nigeria and globally, the SEC believes there is a need for more comprehensive regulation to maintain stability and security in the sector. This decision, though possibly posing additional financial challenges to new startups, could also influence them to provide services within regulatory frameworks, thus increasing transparency and consumer protection in the crypto space.
Though, it is important to note that not everyone agrees with the significant fee hike. Critics argue it could deter smaller businesses and startups from entering the space, potentially stifling innovation.
The SEC is presently collecting public comments on the proposed rule changes and it has not been finalized yet.
