Nigeria SEC Raises Capital Requirements for VASPs, Reshaping the Crypto Industry
Nigeria’s Securities and Exchange Commission (SEC) has announced a sweeping revision of minimum capital requirements for capital market operators, including Virtual Asset Service Providers (VASPs), in what is being described as one of the most significant regulatory overhauls in the country’s financial markets in over a decade.
The new rules, released today, sharply increase the paid-up capital thresholds for crypto exchanges, digital asset custodians, and other virtual asset operators. Under the revised framework, Digital Asset Exchanges (DAXs) and Digital Asset Custodians are now required to maintain a minimum paid-up capital of ₦2 billion, a substantial increase from previous levels.
Other categories of VASPs are also affected. Digital Asset Offering Platforms and Real-World Asset Tokenization Platforms are now required to maintain ₦1 billion in capital, while Digital Asset Intermediaries and Platform Operators face a ₦500 million requirement. Ancillary Virtual Asset Service Providers will need a minimum capital base of ₦300 million.
According to the SEC, the revised capital regime is aimed at strengthening investor protection, improving market stability, and ensuring that operators in the rapidly growing digital assets space have the financial capacity to manage operational and systemic risks. The Commission noted that the changes are part of a broader effort to align Nigeria’s capital market with global best practices, especially as digital assets gain increased adoption.
Industry reactions have been mixed. While some market participants have welcomed the move as a necessary step toward cleaning up the crypto ecosystem and restoring investor confidence, others have raised concerns that the higher thresholds could stifle innovation and push smaller, local startups out of the market. Analysts predict that the new rules may accelerate consolidation in the sector, with smaller firms seeking mergers, acquisitions, or new funding to remain compliant.
The new capital requirements are not limited to crypto firms alone. The SEC’s overhaul also affects traditional capital market operators, fintech platforms, and other regulated entities, in some cases mandating capital increases of over 3,000 percent. This underscores the Commission’s broader intention to recalibrate the entire capital market structure after years of rapid financial and technological evolution.
Affected operators have been given a transition period, with full compliance expected by June 30, 2027. The SEC has warned that failure to meet the new requirements by the deadline could result in sanctions, including suspension or deregistration.
With this announcement, Nigeria’s SEC has sent a clear signal that digital assets and VASPs are now firmly within the regulated financial ecosystem. As the industry adjusts to the new reality, the coming months are expected to define which players can scale, adapt, and survive under Nigeria’s increasingly robust crypto regulatory framework.
