The Securities and Exchange Commission of Nigeria (SEC) has announced the launch of the Accelerated Regulatory Incubation Program (ARIP), which introduces significant new requirements for all Virtual Asset Service Providers (VASPs) in the country. The main change is the requirement for all VASPs to open a local office in Nigeria to obtain permission to offer their services in the country. This measure is aimed at strengthening control over the activities of cryptocurrency companies and ensuring their compliance with local regulatory requirements.
Local Management Requirement
In addition, the new SEC circular requires all existing and potential VASPs to appoint only Nigerian citizens permanently residing in the country to key management positions. This decision underscores the importance of local management and control in the cryptocurrency sphere.
Director Qualifications
Candidates for director positions in cryptocurrency companies must meet strict requirements. In particular, they must have relevant qualifications in the investment business or securities market, as well as undergo accreditation by the regulator. The accreditation process includes submitting a sworn statement confirming no convictions for fraud, presenting an operational plan, a business model with a clear value proposition, and investor protection provisions.
KuCoin’s New Tax Policy
It is also important to note that the cryptocurrency exchange KuCoin has implemented a new tax policy for its users from Nigeria. Starting from July 8, 2024, the exchange began charging a 7.5% Value Added Tax (VAT) on fees for all transactions made by clients from Nigeria. This new development aims to comply with the country’s tax legislation and may affect the financial calculations of platform users.
Thus, Nigeria’s SEC measures and KuCoin’s new taxes reflect the country’s commitment to stricter regulation of the cryptocurrency sector and ensuring transparency in financial operations in this area.
