The Nigerian Securities and Exchange Commission (SEC) has enacted a significant regulatory overhaul for the country's cryptocurrency sector, raising the minimum capital requirement for digital asset exchanges (DAX) and custodians from N500 million ($352,000) to N2 billion ($1.4 million). This move, announced in a circular on January 16, 2026, is part of a broader revision of capital requirements for various market entities, including FinTech operators and virtual asset service providers (VASPs).
The SEC stated the new framework aims to boost operational resilience, align capital adequacy, promote market stability, and support innovation in nascent market segments like crypto. For the first time, the regulator has formally recognized and set capital thresholds for ancillary virtual asset service providers (AVASPs), such as blockchain analytics firms, at N300 million ($211,200). Digital asset offering platforms (DAOPs) must now hold N1 billion ($704,111), and new entrants like real-world asset tokenization platforms (RATOPs) have the same N1 billion requirement.
All affected entities have until June 30, 2027, to comply, with penalties including suspension or withdrawal of registration for those who fail to meet the new standards. This regulatory push is part of a wider government focus on the crypto industry, which includes a new tax law requiring all digital asset activity to be linked to Tax Identification Numbers (TIN) and National Identification Numbers (NIN).
In a parallel development to enhance investor protection, the SEC has partnered with the Nigeria Police Force (NPF) to combat crypto-related fraud and Ponzi schemes. SEC Director-General Dr. Emomotimi Agama, in a meeting with Inspector General of Police Kayode Egbetokun, highlighted the severe social and financial damage caused by scams disguised as crypto and forex trading. "This is not just a financial crime; it is a social menace that erodes public confidence in our entire financial system," Agama stated. The collaboration aims to form a specialized SEC-NPF team to close the enforcement gap exploited by scammers.
This crackdown is a direct response to major incidents like the collapse of the Crypto Bridge Exchange (CBEX) platform in April 2025, which resulted in losses exceeding N1.3 trillion ($916 million). With an estimated 22 million Nigerians (10.34% of the population) holding digital assets, the SEC is emphasizing the urgent need for robust oversight in one of the world's fastest-growing crypto hubs.
