Nigeria: Announced amendment to the Rules on Issuance, Offering Platforms and Custody of Digital Assets to stakeholders and the general public

On 15 March 2024, the Nigerian Securities and Exchange Commission (SEC) announced an amendment to the Commission's Rules on Issuance, Offering Platforms and Custody of Digital Assets. The amendment introduces a local operations requirement for virtual assets service providers (VASPs) in Nigeria. It mandates that no person or entity can provide any virtual assets service unless registered with the SEC, and a company seeking to operate as a VASP must be incorporated and have an office in Nigeria, with its Chief Executive Officer/Managing Director or its equivalent being resident in Nigeria. Additionally, existing Capital Market Operators (CMOs) registered to provide trading, offering platforms, and custodial services may be required to establish a subsidiary/separate entity to take up the function. These changes aim to regulate and safeguard the operations of VASPs in Nigeria's digital asset market.