Nigerian crypto analyst Rume Ophi explained that the recent CBN ban lift would also enable Nigeria’s
crypto foreign investment to rise and facilitate the employment of locals in Web3 and the crypto industry.
The Nigerian Securities Exchange Commission (SEC)’s crypto license requirements will significantly
reduce the number of local crypto exchanges operational in the country despite the Central Bank of
Nigeria (CBN) lifting restrictions on Nigerian banks facilitating cryptocurrency transactions, according to Nigerian crypto analyst Rume Ophi.
In an interview with Cointelegraph, Rume explained that many local exchanges cannot afford to
be operational due to the cost of the minimum paid-up capital requirement
of $556,620 (N500 million naira). He said this requirement would result in mainly foreign exchanges being operational in Nigeria instead of having a healthy balance.
In May 2022, the Nigerian SEC published a 54-page document titled “New Rules on Issuance, Offering Platforms and Custody of Digital Assets” on its website.
This document opens doors for cryptocurrency service providers in Nigeria and details a guidelin
for banking and financial institutions of the country on how they may interact with digital assets.
As per the SEC’s regulation, exchanges must obtain a virtual asset service provider (VASP) license from
the SEC by complying with the requirements of application processing, registration fee and other applicable fees.
A global survey featuring respondents from 15 countries indicates that Africa’s largest economy,
Nigeria, has the most cryptocurrency-aware population in the world.
In Chainalysis’ 2020 Cryptocurrency Geography Report, Nigeria ranked eighth in crypto adoption and usage rate among 154 countries included in the study.