The Securities and Exchange Commission (SEC) has said for any cryptocurrency firm to be eligible to operate in Nigeria, it must be registered and have a physical office space in the country.
The requirement was listed as part of the eligibility requirements in the commission’s special framework programme for the onboarding of Virtual Assets Service Providers (VASPs) tagged Accelerated Regulatory Incubation Programme (ARIP).
Virtual assets are any digital representation of value that can be digitally used in transactions, such a cryptocurrency.
SEC in a circular titled “Framework On Accelerated Regulatory Incubation Program (ARIP) For The Onboarding Of Virtual Assets Service Providers (VASPs)”, directed all operating and prospective VASPs (including crypto brokers/dealers) to visit the SEC ePortal to complete the application process no later than 30 days from the date of the Circular.
It noted that while the rules on Digital Assets Issuance, Offering Platforms, Exchange and Custody are going through an amendment process, virtual assets service providers must come under the ARIP for now.
It said the main purpose of ARIP is to accelerate the onboarding of Entities whose applications have been filed with the Commission, and for other potential applicants seeking to be registered with the Commission.
The programme enables “qualified entities” to obtain approval in principle from the Commission pending when the Digital Assets Rules become operational.
Among others, the framework applies to virtual asset service providers and token issuers that carry on business activities in Nigeria or offer services to Nigerian consumers including platforms that facilitate the offering, trading, exchange, custody and transfer of virtual/digital assets.
SEC said to apply for ARIP, Entities shall be incorporated and have an office in Nigeria and its Chief Executive Officer/Managing Director or its equivalent shall be resident in Nigeria.
Others are that they must be performing investments and securities business; and seeking registration or have pending virtual asset-related applications with the Commission.
