by Edison Irabor, Senior Policy Reporter
LAGOS, NIGERIA – Blockchain Experts Association of Nigeria (BEAN)—founded in 2016 as the Blockchain Nigeria User Group (BNUG), has formally reacted to the Securities and Exchange Commission (SEC) Nigeria’s recent circular regarding the Revised Minimum Capital Requirements for capital market entities.
In a public statement issued on 17 January 2026, the blockchain industry body described SEC’s regulatory intervention as a “significant milestone” in the evolution of Nigeria’s financial architecture. However, while welcoming the move toward institutional-grade regulation, the body warned that the steep financial barriers could stifle indigenous innovation and exclude local startups from the burgeoning digital asset market.
A Shift Toward Institutional Maturity
The SEC’s revised framework, which targets digital asset operators alongside traditional capital market entities, signals a major shift, formally, in how the Nigerian government views the sector. According to BEAN, the circular clearly signals that “digital assets are no longer viewed as fringe fintech activities, but as an institutional market segment that demands robust governance structures.”
BEAN noted that the intent behind the requirements is centered on “strengthening regulatory oversight, enhancing investor protection, promoting operational resilience, and aligning Nigeria’s capital market with emerging global standards.”
Industry Concerns: Innovation vs. Regulation
Despite the positive outlook on market stability, BEAN expressed deep concerns regarding the high capital thresholds. Industry experts fear that the financial requirements may prove prohibitive for the “backbone” of the ecosystem: local innovators.
“The significantly higher capital thresholds could place considerable strain on emerging innovators and startups, many of whom represent the backbone of indigenous innovation within the ecosystem,” the statement read.
BEAN further warned that if these barriers remain too high, Nigeria risks “industry consolidation that could slow innovation and diversity,” potentially pushing talented local entrepreneurs toward “unregulated or offshore digital trading” as they seek alternative pathways.
Read also: SEC Nigeria Raises Minimum Capital for Market Operators, including VASPs as Industry Reacts.
The Call for a Tiered System
To prevent the exclusion of local players, BEAN proposed a “balanced and inclusive” approach to regulation. Central to their recommendations is the implementation of a tiered licensing framework. This would allow early-stage operators to function under limited-scope licenses with lower capital requirements before graduating to full licenses as they scale.
Other key recommendations offered by the association include:
- Shared Infrastructure Models: Encouraging “white-label custodial platforms” and “infrastructure-as-a-service” to lower entry costs.
- Regulatory Sandboxes: Expanding controlled environments where operators can test products while building toward full compliance.
- Capital Clarity: Seeking explicit guidance on what qualifies as “capital,” including the treatment of equity, escrow arrangements, and international parent guarantees.
The Way Forward
The statement, signed by Board Chairman Chimezie Chuta, Director of Communications Seun Adeosun, and Secretary Kue Barinor Paul, Esq., reiterated BEAN’s commitment to working with the SEC to ensure the new era of digital assets is both resilient and equitable.
“BEAN remains ready to collaborate with the Commission by providing industry insights, technical advisory support, and practical perspectives,” the association stated, adding that it is prepared to support public education and training initiatives to deepen understanding of the new regulations.
About BEAN
Founded in 2016 as the Blockchain Nigeria User Group (BNUG), the Blockchain Experts Association of Nigeria (BEAN) is a leading community of blockchain professionals, including developers, legal experts, and policymakers. While BNUG remains an open community and DAO, BEAN is the established legal entity dedicated to bridging the gap between blockchain innovation and practical implementation across the Nigerian economy.
Discover more from Crypto Asset Buyer
Subscribe to get the latest posts sent to your email.
