The Securities and Exchange Commission (SEC) has announced a new capital requirement of N2 billion for cryptocurrency exchanges in Nigeria.
The directive was contained in a circular released on January 16, 2026, replacing the long-standing 2015 capital regime.
The Commission has set a compliance deadline of June 30, 2027, giving affected firms ample time to meet the revised thresholds.
According to the circular, digital asset firms previously operating in regulatory limbo are now fully brought under the capital requirement framework.
“All affected entities are required to comply with the revised Minimum Capital Requirements on or before 30 June 2027,” the SEC stated in the circular.
The Commission warned that “entities failing to meet the requirements within the stipulated timeline would face sanctions, including suspension or withdrawal of registration”.
SEC added that transitional arrangements may be considered on a case-by-case basis, with detailed guidance on compliance modalities and capital verification processes to be issued separately.
Explaining the rationale behind the review, SEC said the changes were informed by the need to strengthen market resilience, enhance investor protection, and align capital adequacy with the evolving risk profile of digital asset activities.
The Commission emphasized that the new framework ensures regulated entities possess sufficient financial capacity to discharge their obligations sustainably.
Naijaonpoint reported that the capital rule changes are likely to accelerate a wave of consolidation, as smaller players struggle to meet the steep thresholds.
Operators may downscale, merge, or exit, while others may seek foreign investment or strategic partnerships to survive.
While this may shrink the number of market participants, it will raise the quality of those who remain.
For investors, this means a stronger safety net—operators with more robust financial cushions are better positioned to weather shocks and protect client assets.
For the SEC, the recalibration is strategic: fewer firms with stronger governance and balance sheets.