Nigeria's SEC has proposed new rules for digital and virtual asset activities while continuing to admit VASPs into ARIP. What could this mean for crypto businesses?
On 13 August 2026, the Securities and Exchange Commission (SEC) announced that three additional Virtual Asset Service Providers (VASPs) had been cleared for admission into its Accelerated Regulatory Incubation Programme (ARIP). One week later, on 20 August, the SEC published proposed rules for Digital and Virtual Assets Operations, Custody and Markets.
The proposed rules are not yet final. However, their scope is considerably broader than the admission of individual businesses into a regulatory incubation programme.
Taken together, the developments suggest that Nigeria's regulatory approach to crypto and digital assets is continuing to evolve.
For businesses operating in, serving or targeting the Nigerian market, the regulatory direction is worth watching closely.
What is ARIP?
ARIP is the SEC's Accelerated Regulatory Incubation Programme.
According to the SEC, it is an innovative regulatory environment designed to fast-track the onboarding of digital asset and other investment service providers, including VASPs and tokenised product platforms, through a controlled regulatory sandbox.
The programme allows the SEC to assess novel business models and technologies in a controlled environment. The aim is to help ensure appropriate safeguards are in place to protect investors and preserve market integrity before products and services are offered to the investing public.
Entities admitted to ARIP receive Approval-in-Principle (AIP).
This is an important distinction. An AIP permits an entity to operate within the defined scope of the programme and subject to conditions stipulated by the SEC. It is not a final licence and remains conditional on continued compliance with applicable regulatory, operational and supervisory obligations.
On 13 August 2026, the SEC announced that three additional VASPs had been cleared for admission into ARIP:
- Pisi Payments Solution Limited;
- BC Access (Nigeria) Limited; and
- Yellow Card (YC) Financial Limited.
The continued use of ARIP demonstrates the SEC's ongoing use of a controlled regulatory environment to assess and supervise digital asset businesses.
For businesses operating in, serving or targeting the Nigerian market, the regulatory direction is worth watching closely.
Nigeria's proposed rules for digital and virtual assets
On 20 August 2026, the SEC published proposed rules titled Digital and Virtual Assets Operations, Custody and Markets.
According to the SEC, the proposed rules would apply to digital and virtual asset activities constituting investments and securities business in Nigeria.
The proposed scope includes:
- the issuance and offering of digital and virtual assets;
- tokenisation, lifecycle management and hybrid digital asset arrangements;
- trading, custody, transfer and settlement;
- investment, advisory and financial services relating to digital and virtual assets; and
- other activities determined by the SEC.
This is a broad proposed regulatory perimeter.
The proposed framework extends the discussion beyond the regulation of a single type of crypto business and contemplates a range of activities across the digital and virtual asset ecosystem.
For crypto businesses, that matters.
The regulatory question is not limited to whether a platform facilitates the buying and selling of crypto assets. Businesses involved in custody, tokenisation, transfers, settlement, investment or advisory services may also need to consider how the final framework could affect their activities.
The cross-border implications
The SEC's proposed scope is not limited to businesses physically operating in Nigeria.
According to the proposed rules, the framework would also apply to a person who provides services to persons resident in Nigeria or targets Nigerian investors or the Nigerian market, whether directly, indirectly or through digital channels.
This is particularly relevant to digital asset businesses with cross-border operating models.
Crypto businesses often operate across multiple jurisdictions without maintaining a conventional physical presence in every country where their services are available. A business may be incorporated in one jurisdiction while serving users in several others.
The proposed rules therefore raise an important compliance question: could a business fall within Nigeria's regulatory perimeter because of the market it serves or targets?
The answer will ultimately depend on the final rules and the specific facts of a business model. However, businesses that provide services to Nigerian residents or actively target the Nigerian market may need to assess the proposed framework carefully.
From VASP incubation to a broader regulatory framework?
It would be premature to suggest that the proposed rules will replace ARIP.
The two developments serve different functions.
ARIP is a controlled regulatory programme through which the SEC can assess digital asset businesses, business models and technologies. The proposed Digital and Virtual Assets Operations, Custody and Markets Rules would establish a broader regulatory scope for activities constituting investments and securities business in Nigeria.
What is clear is that the SEC is continuing to admit VASPs into ARIP while simultaneously consulting on a framework that addresses a much wider range of digital and virtual asset activities.
This may indicate the next stage of Nigeria's evolving regulatory approach.
What should crypto businesses be watching?
The proposed rules are not final law and should not be treated as binding obligations in their current form.
However, the proposal provides an important indication of the areas currently under regulatory consideration.
Businesses operating in or targeting the Nigerian market should consider:
The activities they perform. The proposed scope extends beyond trading to activities including issuance, tokenisation, custody, transfers, settlement and investment or advisory services.
Who they serve. Businesses should consider whether they provide services to Nigerian residents or actively target Nigerian investors or the Nigerian market.
Their current regulatory status. Entities admitted to ARIP should remain aware that Approval-in-Principle is not a final licence and remains subject to the SEC's conditions and obligations.
The final rules. The proposal may change as it moves through the SEC's rulemaking process. Businesses should continue monitoring its development.
What this could mean for Africa's crypto market
Nigeria's regulatory developments are likely to be relevant beyond its borders.
Crypto and digital asset businesses operating across Africa are increasingly navigating different regulatory approaches from one jurisdiction to another. The applicable requirements may depend on the activities a business conducts, the markets it serves and the way in which those markets are regulated.
Nigeria's proposed framework is therefore a useful reminder that regulation should not be viewed only through the lens of where a company is incorporated.
Where a business provides services, who it serves and how it targets users may also be relevant to its regulatory analysis.
Nigeria is one of Africa's most important digital asset markets. How its framework develops will therefore be closely watched by businesses operating across the continent.
Looking ahead
Nigeria's proposed Digital and Virtual Assets Operations, Custody and Markets Rules are not yet final.
That point is important. The proposed framework may change before any final rules are adopted, and businesses should avoid assuming that the current proposal already creates binding obligations.
Nevertheless, the SEC's August developments provide a clear indication of its current regulatory focus.
The Commission is continuing to use ARIP as a controlled environment for onboarding and assessing digital asset businesses while consulting on proposed rules that would cover a broader range of digital and virtual asset activities.
For crypto businesses, this is a development to watch closely.
For Nigeria's digital asset market, it may represent an important next step in the continuing development of Nigeria's crypto regulation.
This article is for general informational purposes only and does not constitute legal advice.