By Benson Daniel
The Securities and Exchange Commission has proposed a minimum capital requirement of ₦2 billion for digital asset exchanges and digital asset custodians operating in Nigeria as part of a broader overhaul of regulations governing the country’s growing digital asset market.
The proposed requirements are contained in new draft rules covering digital and virtual asset operations, custody and markets, released on August 20, 2026. The framework is intended to strengthen investor protection, improve market integrity and ensure that operators have sufficient financial capacity to manage the risks associated with digital asset businesses.
Under the proposed framework, Digital Asset Exchanges and Digital Asset Custodians would each be required to maintain minimum capital of ₦2 billion.
Other categories of operators would face different thresholds. Digital Asset Platform Operators, Digital Asset Offering Platforms and Real World Asset Tokenisation Platforms would each require minimum capital of ₦500 million, while Virtual Asset Service Providers would be required to maintain at least ₦200 million.
The commission has also proposed a ₦30 million registration fee for Digital Asset Exchanges, Digital Asset Custodians, Digital Asset Platform Operators, Digital Asset Offering Platforms and Real World Asset Tokenisation Platforms.
Applicants would additionally be required to pay processing and application fees under the proposed regulatory structure.
The proposed rules are designed to cover a broad range of activities within Nigeria’s digital asset ecosystem, including the issuance and offering of digital assets, tokenisation, trading, custody, transfer and settlement, as well as investment, advisory and other financial services connected to digital assets.
The framework would apply not only to businesses physically operating in Nigeria but also to entities providing services to Nigerian residents or targeting Nigerian investors and the Nigerian market through digital channels.
The SEC’s latest proposal represents a significant tightening of financial requirements for digital asset operators. The higher capital thresholds are expected to ensure that firms entering the market have stronger financial buffers and are better positioned to meet their obligations to customers and investors.
The regulatory changes also come as cryptocurrency and other digital asset activities continue to gain prominence among Nigerian consumers and businesses, increasing the need for stronger oversight of the sector.
In addition to capital requirements, the proposed framework contains measures aimed at strengthening corporate governance, operational controls and investor protection. Regulated entities would be expected to comply with applicable corporate governance requirements and other standards prescribed by the commission.
The SEC has also proposed limits on retail participation in digital asset offerings. Under the draft rules, a retail investor would generally not be permitted to invest more than ₦1 million in an offering by a single issuer or more than ₦10 million across digital asset offerings within a 12 month period, subject to conditions and possible adjustments prescribed by the commission.
The proposed investment limits are intended to reduce the exposure of retail investors to excessive risks in a market known for significant price volatility.
The commission is currently seeking public comments on the proposed rules, with stakeholders given two weeks from the date of exposure to submit their views.
If adopted, the new framework would represent another major step in the formalisation of Nigeria’s digital asset industry, creating clearer requirements for operators while increasing the financial and compliance obligations attached to participation in the market.
The reforms could also encourage consolidation within the sector, as smaller operators that cannot meet the proposed capital and regulatory requirements may be required to raise additional funds, restructure their operations or exit certain regulated activities.
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