News

Nigeria Exchanges Dismayed by Stringent Crypto License Requirements from the SEC

single-image

According to Nigerian crypto researcher Rume Ophi, the recent lifting of the CBN restriction will also boost foreign investment in cryptocurrency in Nigeria and make it easier for locals to get jobs in Web3 and the crypto sector.

CryptoCaster Quick Check:

Rume Ophi, a Nigerian crypto analyst, claims that even though the Central Bank of Nigeria (CBN) has lifted restrictions on Nigerian banks facilitating cryptocurrency transactions, the Nigerian Securities Exchange Commission’s (SEC) requirements for crypto licenses will drastically reduce the number of local crypto exchanges operating in the nation.

Advertisement

Rume clarified in an interview that the minimum paid-up capital requirement of $556,620 (N500 million naira) is too expensive for many local exchanges to maintain. He argued that rather than creating a balanced economy, this criterion will lead to the majority of foreign exchanges operating in Nigeria.

A 54-page document titled “New Rules on Issuance, Offering Platforms and Custody of Digital Assets” was posted on the Nigerian Securities and Exchange Commission’s website in May 2022.

Stay in the know on crypto by frequently visiting Crypto News Today

This document provides guidelines for Nigerian banking and financial institutions on how to deal with digital assets, as well as opening doors for bitcoin service providers operating there.

Exchanges must abide by the SEC’s regulation in order to receive a virtual asset service provider (VASP) license. This license requires application processing, a registration fee, and any other related fees.

According to a global poll with participants from fifteen nations, Nigeria, the largest economy in Africa, has the world’s most cryptocurrency-aware populace. Nigeria placed eighth out of 154 nations in Chainalysis’ 2020 Cryptocurrency Geography Report for acceptance and usage of cryptocurrencies.

Advertisement

The country’s rate of cryptocurrency adoption should, however, have attracted greater international investment in cryptocurrency, but the opposite is true. Rume highlighted that the low investment rate was the result of financial institutions being prohibited from providing support to cryptocurrency exchanges.

Rume clarified that the recent lifting of the CBN prohibition will also allow Nigeria’s foreign investment in cryptocurrency to increase and will make it easier for locals to find jobs in Web3 and the cryptocurrency sector.CRYPTOCASTER® - DECENTRALIZED FREEDOM!


We hope you appreciated this article. Before you move on, I was hoping you would consider taking the step of supporting CryptoCaster’s journalism. 

From  Elon Musk, Larry Fink(BlackRock) to Jamie Dimon(JP Morgan Chase) a number of billionaire owners have a powerful hold on so much of the hidden agendas’ which eludes the public concerning the paradigm shift juxtaposed by cryptocurrency and web3 emerging technologies. CryptoCaster is different. We have no billionaire owner or shareholders to consider. Our journalistic efforts are produced to serve the public interest in crypto development and institutional disruptions – not profit motives.

And we avoid the trap that befalls much U.S. and global media – the tendency, born of a desire to please all sides, to engage in false equivalence in the name of neutrality and retail consumer protection. While fairness and transparency dictates everything we do, we know there is a right and a wrong position in the fight against fiat global banking interest and monetary reconstruction precipitated by the emerging crypto ecology.

When we report on issues like the FTX, Binance and Ripple crisis, we’re not afraid to name who or what is uncovered. And as a crypto sentinel, we’re able to provide a fresh, outsider perspective on the global monetary disruption – one so often missing from the insular American and European media bubble. 

Around the world, readers can access the CryptoCaster’s paywall-free journalism because of our unique reader-supported model. That’s because of people like you. Our readers keep us independent, beholden to no outside influence and accessible to everyone – whether they can afford to pay for news and information, or not.

We thankyou for the on-going support our readers have bestowed monetarily. If you have not considered supporting CryptoCaster, if you can, please consider supporting us just once from $1 or more of Bitcoin (satoshi) or Eth, and better yet, support us every month with a little more. Scroll further down this page to obtain CryptoCaster’s wallet addresses.

Thank you.

Kristin Steinbeck
Editor, CryptoCaster


Please Read Essential Disclaimer Information Here.
© 2022-2023 Crypto Caster provides information. CryptoCaster.world does not provide investment advice. Do your research before taking a market position on the purchase of cryptocurrency and other asset classes. Past performance of any asset is not indicative of future results. All rights reserved.


Contribute to CryptoCaster℠ Via Metamask or favorite wallet. Send Coin/Token to Addresses Provided Below.
Thank you!
BTC – bc1qgdnd752esyl4jv6nhz3ypuzwa6wav9wuzaeg9g
ETH – 0x7D8D76E60bFF59c5295Aa1b39D651f6735D6413D
MATIC – 0x7D8D76E60bFF59c5295Aa1b39D651f6735D6413D
LITECOIN – ltc1qxsgp5fykl0007hnwgl93zr9vngwd2jxwlddvqt


CRYPTOCASTER HEATMAP


You may also like