In order to be permitted to conduct business in the nation, Virtual Asset Service Providers (VASPs) must open a local office, according to the Nigeria Security Exchange Commission (SEC Nigeria).

The Framework on Accelerated Regulatory Incubation Programme (ARIP) For The Onboarding Of Virtual Assets Service Providers (VASPs) lists this as one of the requirements. According to BitKE, SEC Nigeria issued a circular earlier in June 2023 stating that all current and potential VASPs (including cryptocurrency brokers/dealers) must visit the SEC ePortal to finish the application procedure by the end of the month.

The SEC states that virtual asset service providers are now required to fall within the ARIP, and that the regulations governing the issuance of digital assets, offering platforms, exchange, and custody are undergoing revision. Organisations eligible to apply for the ARIP must possess the following:

• Be incorporated and have an office in Nigeria and its Chief Executive Officer/Managing Director or its equivalent shall be resident in Nigeria
• Be performing investments and securities business
• Be seeking registration or have pending virtual asset-related applications with the Commission

In addition, applicants must demonstrate appropriate arrangements for safeguarding investors’ interests and the public interest, among other things. In addition to providing proof of the necessary shareholder capital, applicants must pay a processing charge of N2 million.

According to the regulator, ARIP is designed to accelerate the onboarding of entities whose applications have been filed with the Commission, and for other potential applicants seeking to be registered with the Commission.  It enables ‘qualified entities’ to obtain approval in principle from the Commission pending when the Digital Assets Rules become operational.

The framework applies to virtual asset service providers and token issuers that carry on business activities in Nigeria or offer services to Nigerian consumers including platforms that facilitate the offering, trading, exchange, custody, and transfer of virtual/digital assets.