Nigerian crypto startups have raised concerns over the Securities and Exchange Commission’s (SEC) new minimum capital requirements, describing the regulations as a “disproportionate burden” on early-stage companies.
In a position paper submitted to the SEC, the Stakeholders in Blockchain Association of Nigeria (SiBAN), which includes startups such as Dantown, Roqqu, and Breet, urged the regulator to review the January 16 rules. Digital Asset Exchanges (DAXs) and custodians are now required to maintain a minimum of ₦2 billion ($1.4 million), up from ₦500 million ($351,000).
SiBAN proposed a tiered system aligned with operational scale: an “Innovation Track” for startups requiring ₦50 million–₦200 million ($37,300–$149,200), a “Growth Track” of ₦200 million–₦500 million ($149,200–$351,000), and an “Institutional Track” of ₦500 million ($351,000) and above for established firms.
The association also suggested a phased implementation through 2028 and the creation of a Digital Asset Regulatory Working Group to ensure continuous consultation between regulators, startups, and industry experts.
SiBAN president Barr. Mela Claude Ake said the measures aim to balance investor protection with innovation sustainability, warning that the blanket capital thresholds could favor well-funded incumbents over emerging domestic players.
