The Securities and Exchange Commission (SEC) in Nigeria has proposed a 400% registration fee increase for cryptocurrency firms. The move is aimed at increasing the regulatory oversight over the cryptocurrency industry in the country.
In more detail, the proposal suggests that new digital asset offerings would need to pay an upfront fee of 2 million Naira (approximately $5,000). This is a significant jump from the previously proposed fee of 500,000 Naira (around $1,270). On top of this, an annual fee of 1% of the total value of digital assets under management would also be levied.
The SEC states that this decision was taken after considering the rapid growth and increasing complexity of the cryptocurrency industry. They believe that this measure will ensure the safety of investors while also fostering a more transparent and accountable market.
The news has been met with backlash from crypto firms, who argue that the substantial hike in fees could stifle innovation and deter smaller firms and startups.
Despite this, the SEC has justified its decision saying it aims to protect investors and maintain integrity in the cryptocurrency marketplace. The proposed changes are currently in the consultation phase and are open for discussion until a final decision is made.
