Nigeria’s Securities and Exchange Commission (SEC) has proposed a minimum capital requirement of ₦2 billion each for Digital Asset Exchanges (DAXs) and Digital Asset Custodians (DACs) as part of a broader regulatory framework for the country’s digital and virtual asset market.
The proposed requirement is contained in the SEC’s Rules on Digital and Virtual Assets Operations, Custody and Markets, which establish capital, registration, conduct, custody and supervisory requirements for businesses operating in Nigeria’s digital-asset ecosystem.
Under the proposed framework, the ₦2 billion minimum capital threshold would apply to two of the most significant categories of digital-asset businesses: exchanges that facilitate secondary trading and custodians responsible for safeguarding digital assets and private keys on behalf of clients.
The SEC has proposed lower capital thresholds for other categories of digital-asset businesses. Digital Asset Platform Operators (DAPOs), Digital Asset Offering Platforms (DAOPs) and Real-World Asset Tokenisation Platforms (RATOPs) would each require a minimum capital of ₦500 million, while Virtual Asset Service Providers (VASPs) would face a ₦200 million minimum capital requirement.
The proposed capital structure signals a differentiated regulatory approach based on the nature and potential risk of each digital-asset activity.
Under the proposed rules, a Digital Asset Exchange is defined as a platform…
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