Nigeria Tightens Crypto Regulations with 400% Capital Hike for Exchanges

Nigeria's Securities and Exchange Commission (SEC) has escalated oversight of its burgeoning cryptocurrency sector, mandating a 400% increase in minimum capital requirements for digital asset exchanges. The new framework raises the threshold from ₦500 million ($352,000) to ₦2 billion ($1.4 million), effective January 2026.

The MOVE targets operational resilience in Africa's largest crypto market, where adoption surged post-2021 bull run. Regulators cite capital adequacy and market stability as priorities, though the steep hike may pressure smaller platforms. Notably, the rule extends to digital asset custodians and issuance platforms—a clear nod to Nigeria's ambition to formalize its crypto economy.

Market observers note parallels with global regulatory trends, where jurisdictions from Dubai to Singapore have imposed similar capital buffers. The policy arrives as Nigeria grapples with currency volatility, with crypto increasingly serving as both hedge and payment rail.