- Nigerian crypto exchanges and virtual asset service providers (VASPs) may need to merge in order to meet the licensing requirements set by the Nigerian Securities Exchange Commission (SEC).
- The existing guidelines for VASPs are not favorable to indigenous crypto exchanges in Nigeria, according to crypto analyst Rume Ophi.
- Local exchanges should have been given priority and included in the formulation of the guidelines, Ophi argues.
- Exchanges must obtain a VASP license from the SEC and comply with the necessary requirements and fees.
Kue Barinor Paul, a Nigerian Web3 legal representative, believes that Nigerian crypto exchanges and VASPs may need to merge in order to meet the licensing requirements set by the SEC. This merger could help these entities pool their resources and afford the necessary licenses.
Rume Ophi, a Nigerian crypto analyst, argues that the existing guidelines for VASPs in Nigeria are not favorable to indigenous crypto exchanges. Ophi suggests that local exchanges should have been given priority and included in the formulation process of the guidelines. This would have ensured more favorable conditions for them to operate and comply with the licensing requirements.
Currently, in order to obtain a VASP license from the SEC, exchanges need to go through the application processing, pay registration fees, and fulfill other requirements and fees as required by the SEC.
It is important for regulatory bodies to consider the specific needs and challenges faced by local crypto exchanges and VASPs when formulating guidelines and requirements. The collaboration and merging of these entities could be a potential solution to overcome the financial burden of obtaining licenses. By prioritizing local exchanges in the formulation process, the SEC could create a more conducive environment for the growth and development of the crypto industry in Nigeria.