Nigeria's Securities and Exchange Commission (SEC) has introduced draft regulations that would mandate a minimum capital floor of ₦2 billion for cryptocurrency exchanges and custodians operating within the country.
This high financial threshold is expected to block many international trading platforms from legally serving Nigerian retail customers.
These are Key Highlights of the Proposed Framework
Massive Capital Floor 👇
Exchanges and custodians must hold at least ₦2 billion, significantly raising the barrier to entry for foreign operators without an established local capital base.
Aggressive Stablecoin Backing: Foreign-currency stablecoins would be subjected to a 120% backing requirement, far surpassing the standard 1:1 reserve model utilized globally.
Broad Jurisdiction: The proposed rules target both domestic entities and foreign-domiciled platforms that cater to Nigerian retail investors.
Potential Market Impact
As one of the largest cryptocurrency markets by volume in Africa, Nigeria's new regulatory direction could reshape the local digital asset landscape.
If enacted, the rules risk narrowing platform choices for everyday users, potentially driving trading volume toward either fully compliant domestic platforms or unregulated alternatives.