Crypto Coins
Nigeria, which has been targeting the cryptocurrency industry in recent months, has proposed significant amendments to fees crypto firms need to pay so they can operate in the country. Traxer/Unsplash

KEY POINTS

  • From a $63 filing fee, the Nigerian SEC wants it to be hiked to $190
  • It seeks to increase the processing fee to $635 from $190
  • Crypto platforms have been accused of pushing the Nigerian naira down

Nigeria's Securities and Exchange Commission (SEC) sought a 400% hike in registration fees for crypto exchanges as part of its proposed changes to its rules for platforms offering services on cryptocurrency and digital assets.

In a notice regarding the proposed amendments released Friday, the Nigerian SEC said that companies seeking to register their business as Digital Assets Offering Platforms (DAOPs) should pay a filing or application fee of ₦300,000 ($190), from the previous fee of ₦100,000 ($63). News of the proposed changes were first picked up by news outlets Monday.

The regulator wants the processing fee for such applications to be set at one million Nigerian Naira ($635) from the current fee of ₦300,000. It also seeks a staggering ₦150 million (approximately $95,300) registration fee, a significant jump from the existing fee of ₦30 million ($19,000).

Finally, the Nigerian SEC is seeking a sponsored individual fee of ₦300,000, as opposed to the current fee of ₦100,000.

Outside of crypto business registration fees, the SEC also proposed that the evidence of required minimum paid-up capital for crypto firms wanting to do business in the country be increased to ₦1 billion (approximately $635,700) from the current ₦500 million (approximately $317,800)

The commission's proposed changes that may be discouraging for crypto firms looking to do business in Nigeria come at a critical time for the Nigerian naira, which has been plummeting to record lows against the dollar. Nigerian officials have been blaming the crypto industry for the naira's downward spiral.

The Nigerian government has also blocked several crypto firms, but has apparently singled out Binance, the world's largest cryptocurrency exchange by trading platform.

Last week, a Binance spokesperson confirmed to International Business Times that the exchange's global head of intelligence and investigation, Tigran Gambaryan, and its regional manager for Africa, Nadeem Anjarwalla, were still in Nigeria after they flew to the country on Feb. 25. Before the confirmation, Financial Times reported that two Binance executives were detained by Nigerian authorities.

Gambaryan's wife, Yuki, reportedly said the Nigerian government has not provided a "definite answer" on how the Binance executives were doing or whether they faced criminal charges and when they will be released.

Binance announced earlier this month that it was halting Naira services following allegations that it facilitated "suspicious flows." The Nigerian House of Representatives Committee on Financial Crimes also reportedly summoned Binance CEO Richard Teng due to the said issue.

A Nigerian government advisor has alleged that crypto platforms were "trying to manipulate" the naira to "Ground Zero."

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