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Nigerian exchanges are struggling to meet licensing requirements. Nigerian crypto analyst Rume Ophi made the announcement regarding the situation. Here are the details!
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Nigerian crypto analyst Rume Ophi has revealed that exchanges in Nigeria are struggling to comply with the licensing requirements of the Securities and Exchange Commission (SEC). According to Ophi, exchanges need to review the Virtual Asset Service Providers (VASP) guidelines to comply with the licensing requirements.
In an interview, Rume Ophi touched on the fact that the SEC’s current rules are not suitable for local exchanges in Nigeria and that local exchanges should be prioritized when considering the rules. He said that local exchanges will not be able to meet the initial capital requirement of 500 million Naira, which is equivalent to about $550,000, and as a result, foreign exchanges will begin operating in the country. Ophi added that the Nigerian National Assembly should also help the SEC to ensure that the licensing requirements are in line with the country’s economic conditions.
Nigerian Exchanges could have to merge
Nigerian Web3 legal representative Kue Barinor Paul agreed with the analyst’s statements and said that Nigerian exchanges will have to merge to meet these requirements. Paul noted that the SEC needs to revise the licensing requirements and that these requirements are suitable for foreign exchanges.
A survey found that Nigeria has the largest economy in Africa and that Nigeria is one of the countries with the largest crypto awareness in the world. As the interest in crypto in the country increased, it was expected that foreign investors would also increase, but the investment rate did not reach the expected level. Ophi believes that the reason for the low investment rate is related to the recent ban on financial institutions that serve crypto exchanges.