Finally, a ‘Framework on Accelerated Regulatory Incubation Program (ARIP) for the Onboarding of Virtual Assets Service Providers (VASPs)’ has just been issued by the Securities and Exchange Commission (SEC).
Described as a “special window for the onboarding of VASPs, the new Framework is tagged Accelerated Regulatory Incubation Programme (ARIP).
“By this Circular”, states the SEC, “all operating and prospective VASPs are hereby directed to visit the SEC ePortal to complete the application process no later than 30 days from the date of this Circular.”
Having finally issued an operating guideline for VASPs to operate in the country, the SEC warns that it would “thereafter commence enforcement action against any operating VASP that fails to comply with the directives in this Circular.”
Meanwhile, the initial Rules on Digital Assets Issuance, Offering Platforms, Exchange and Custody, which was issued in May 2022, “is going through an amendment process “. The SEC points out that the purpose of the amendment is to “expand the scope of regulation in line with the current realities.”
The SEC invited interested VASPs to visit the SEC’s website for comprehensive guidance on the ARIP Framework. The SEC Circular, dated 21 June 2024, is published here. In our Crypto Viewpoint last week, the urgent need for Nigerian government and regulators to responsibly regulate the virtual assets industry rather than enforcing clampdowns, crackdowns, and shutdowns was strongly emphasized in order to reposition the Nigerian market.
‘Framework on Accelerated Regulatory Incubation Program (ARIP) for the Onboarding of Virtual Assets Service Providers (VASPs)’ has just been issued by the Securities and Exchange Commission (SEC).
Described as a “special window for the onboarding of VASPs, the new Framework is tagged Accelerated Regulatory Incubation Programme (ARIP).
“By this Circular”, states the SEC, “all operating and prospective VASPs are hereby directed to visit the SEC ePortal to complete the application process no later than 30 days from the date of this Circular.”
Having finally issued an operating guideline for VASPs to operate in the country, the SEC warns that it would “thereafter commence enforcement action against any operating VASP that fails to comply with the directives in this Circular.”
Meanwhile, the initial Rules on Digital Assets Issuance, Offering Platforms, Exchange and Custody, which was issued in May 2022, “is going through an amendment process “. The SEC points out that the purpose of the amendment is to “expand the scope of regulation in line with the current realities.”
The SEC invited interested VASPs to visit the SEC’s website for comprehensive guidance on the ARIP Framework. The SEC Circular, dated 21 June 2024, is published here.
In our Crypto Viewpoint last week, the urgent need for Nigerian government and regulators to responsibly regulate the virtual assets industry rather than enforcing clampdowns, crackdowns, and shutdowns was strongly emphasized in order to reposition the Nigerian market. In April, following the appointment of a new Director-General at the SEC, we shared the thoughts of some leading virtual asset industry stakeholders who expressed confidence in Dr. Emomotimi Agama, the new Director-General of the SEC, having the capacity to stem “turn the tide” in an industry that has continued to harp on the need for adaptive and risk-based regulation that balances innovation with regulation. Is the Nigeria virtual assets industry about to experience a transformative change? Time will tell.
