Regulatory Update: Regulation Of Virtual Assets Service Providers In Nigeria

Introduction

In our earlier article, we had highlighted the intention of the primary regulator of investments and securities in Nigeria, the Securities and Exchange Commission (the "Commission") to regulate virtual/digital assets in Nigeria. These intentions were, however, put on hold, (as highlighted in our article) , after the Central Bank of Nigeria ("CBN") issued a directive to banks and other financial institutions instructing them to close the accounts of all persons or entities transacting in or operating cryptocurrency exchanges (the "CBN Directive").

Notwithstanding the subsistence of the CBN Directive, the Commission recently released Proposed Rules for the Registration of Virtual Assets Service Providers ("VASP") in Nigeria. (the "Proposed Rules").