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Nigeria SEC draft rules would require ₦2bn minimum capital for digital asset exchanges and custodians, pushing consolidation across the crypto market.
Nigeria SEC draft rules set new minimum capital requirements for digital asset firms. The headline number is ₦2 billion for exchanges and custodians. Operators say the bar could force mergers, exits, and fewer licensed players.
Nigeria SEC draft rules on digital assets, meaning crypto and token-based products, introduce a broad registration and conduct framework. The proposal covers exchange operations, custody, stablecoins, and general market rules.
The biggest change getting attention is the capital requirement. Any digital asset exchange or digital asset custodian would need at least ₦2 billion in minimum capital. A custodian is a company that holds customers’ crypto assets, similar to how a bank safeguards deposits.
The draft also sets lower thresholds for other categories. Platform operators and offering platforms would need ₦500 million. Virtual asset service providers, a catch-all category that can include brokers and other intermediaries, would need ₦200 million.
One industry player told Condia that the capital bar does not match the revenue many Nigerian crypto businesses make from local trading activity. They expect the rule to shrink the number of operators, potentially by half or more.
If these thresholds remain in the final rulebook, smaller exchanges and custody providers may need to raise fresh capital, merge with larger rivals, or shut down Nigeria-facing operations. That can speed up consolidation, meaning fewer companies serving the market.
For users, consolidation can be a mixed outcome. Larger, well-capitalised firms may invest more in compliance and security. But fewer competitors can also mean higher fees, less product choice, and slower support.
For founders and investors in Nigeria, the draft signals a stricter licensing era. It could shift funding plans toward regulatory capital, and push more crypto businesses to focus on compliant rails like custody, stablecoin settlement, and regulated brokerage.
Primary Source: Condia
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