SEC says no digital asset operator has secured final registration under ARIP

The Securities and Exchange Commission (SEC) in Nigeria has stated that no digital asset operator has secured final registration under its Accelerated Regulatory Incubation Programme (ARIP). Director General of the Commission warned that approvals in principle do not equate to full operating licenses. The clarification comes as the SEC is strengthening its regulatory framework for digital assets.

Operators must comply with specific restrictions while undergoing regulatory incubation. They are prohibited from conducting business beyond the activities presented to the Commission during their applications and are subject to regular reporting. The restrictions are designed to ensure compliance and prevent operators from breaching conditions set for their incubation period.

The SEC operates a Regulatory Information (RI) Programme for genuinely new businesses with limited or closed supervision. Participants must continue meeting conditions attached to their admission into the program, and the Commission may terminate participation if they breach restrictions or deviate from their approved business plan.

The Commission recently admitted three new companies under ARIP, bringing the total number of digital asset firms under the program to 14. Nigeria has also introduced Guidelines on the Taxation of Virtual Assets, imposing a 30% income tax on crypto gains for medium and large companies earning profits from cryptocurrency and other virtual asset transactions.