Eternity Law International News Crypto exchange in Nigeria

Crypto exchange in Nigeria

Published:
December 21, 2022

In May 2022, Nigeria officially adopted a law on the regulation of cryptographic means. Today, registration of a structure such as crypto exchange in Nigeria is a new phenomenon for business owners, however, this allows local regulators to fully license this activity, and allows companies to operate in accordance with certain laws and regulations. Below, we’ll try to answer: do cryptoexchanges need to be registered?

Creating crypto exchange in Nigeria from the scratch

  1. Thus, how do I start cryptoexchange in Nigeria? Initial step in order to legally run business locally is to register with Corporate Affairs Commission (CAC). Body regulates the establishment and management of firms in the jurisdiction.
  2. Next, you need to fill out the appropriate form, where you must specify the email, corporate phone number of the company, company name, website and address.
  3. Further, from the proposed areas of activity, you need to choose the direction in which the company will offer its services and develop. This could be a fund management company, a crypto exchange, a financial management consulting firm, etc.

In addition, Nigeria’s crypto company must comply with all the rules of crypto service providers.

Provision of proof of paid-in capital

The owner of cryptoexchange in Nigeria must prove that he owns a minimum paid-in capital (approximately $113,000). This amount includes bank accounts, principal and money invested in securities.

In addition, cryptolicense Nigeria requires insurance coverage of at least 25% of the minimum paid-in capital. The Regulatory Commission has the right at any time to impose additional requirements regarding the financial security and turnover of the company, or to require any documentation.

Requirements for company employees under license for crypto activity Nigeria

  1. It is necessary to provide copies of documents of officials, one of which must be listed as a compliance officer.
  2. Persons holding managing positions must provide evidence of at least four years of work experience in this field.

In accordance with cryptocurrency regulation in Nigeria, firms also need to demonstrate following data:

  • name and address of subsidiaries, type of company and the percentage of the shareholder’s share in the business;
  • 2 copies of the current or proposed rules of the company;
  • crypto license Nigeria requires a short history of the firm, the structure of the organization and shareholders, the main members and data on past and future work;
  • data on board members and founders;
  • certificates of payment for shares held by shareholders;
  • instructions for checking the work of company members;
  • a copy of data on commercial objects.

In addition, to get crypto license in Nigeria, businesspersons will need to provide a business plan, a bank statement, copies of personnel policies and procedures, a company Statute and other corporate documents. The regulator may request an additional package of papers, if necessary. An application for registration of crypto-currency exchange in Nigeria will be valid only after submission of all required documents and provision of required data.

Thus, are cryptoexchanges legal in Nigeria? Definitely, yes. With the introduction and entry into force of the new SEC directive, the authorities of the jurisdiction want to provide greater and complete control over firms that work with crypto-currencies. If you intend to open crypto exchanges in Nigeria, and do not know all nuances and are afraid to face a lot of problems, contact our specialists. Our team are professionals in field of making cryptocurrency trading legal in Nigeria; we’ve been dealing with opening of crypto-companies in various jurisdictions for more than a year, and who know all the pitfalls of this process. We will help you create a legal company with minimal investment in the shortest possible time, and we can also offer an extensive selection of ready-made companies for sale.

Is a license required to trade crypto-currencies in Nigeria?

To conduct trading operations with crypto-currencies in Nigeria, individuals need to open an account on a crypto-exchange. If entrepreneur intends to provide certain services related to crypto-currencies, then a special permit must be obtained.

Do I need to pay tax on crypto profits?

In most cases, profits earned from transactions with crypto-currencies are taxed. However, it is better to discuss this issue with a professional expert, in which we are ready to help you.

Is crypto-currency available in Nigeria?

Yes. Crypto-currency can be purchased for personal use, or to start cryptobusiness.

You could be interested

PSP license in Dubai

Technological advances have forced many companies to look for faster ways to transfer money. That is why various companies began to appear. Which helps process payments in an accelerated format. This is a lucrative field of activity and there are a lot of people willing to make money in it. Around the world, including Dubai...

Сrypto license in Bahrain

The Central Bank of Bahrain (‘CBB’) has announced comprehensive legislation to oversee and license ‘Regulated crypto-asset services’ in Bahrain (crypto license in Bahrain), in keeping with its ambition of becoming the region’s premier FinTech centre. Volume 6 of the CBB Rulebook, which controls Capital Markets, contains the regulatory framework. The regulations are the result of...

SiGMA Europe Malta

SiGMA Europe Malta, held from November 14th to 18th, 2022, proved to be a cornerstone event in the iGaming and emerging tech calendar. Set against the backdrop of the picturesque island of Malta, renowned as a global hub for the iGaming industry, this summit attracted a diverse array of attendees, including industry leaders, policymakers, investors,...

Banks in Cyprus

Banks in Cyprus work with offshore companies. Cyprus has a distinct tradition of serving offshore companies – and it has a long history. The status of a British ex-colony and the surviving British legal system prepare the legal basis for dealing with offshore accounts and firms. As in the Baltics, accounts are quickly opened in...

Substance for UK companies

We would like to inform you that CIM bank has introduced Substance requirements for companies in the UK. Eternity Law International specialists have developed a special offer for clients who want to keep or open a bank account. Package price – 3 400 Euro What’s included in the price: Premises sublease agreement for 1 year...

UK parliamentary group initiates new crypto asset inquiry

Recently, the cross-party group of UK parliamentarians (ΑPPG) made a notification that it will kickstart a new crypto asset inquiry scrutinizing the cryptocoin and virtual asset field. The statement encompassed detailed description about the initiative’s plan of action and how stakeholders can take part in the process. Overview of the crypto asset inquiry in the United Kingdom By...
Fill the blank:

Zurich

Dreikonigstrasse, 31A, Stockerhof

Kyiv

Baseina street, 7

London

Grosvenor Gardens, 52

Washington

1629 K St. Suite 300 N.W.

Vilnius

Gediminas Avenue, 44A

Tallinn

Kesklinna linnaosa, Tuukri 19

Edinburgh

Lochrin Square, 1

Nicosia

Jacovides Tower, 5 floor

Riga

Esplanade, 7 floor

Hong Kong

18 Harbour Road, 35/F, Central Plaza, Wanchai

Singapore

Level 42, Suntec Tower Three, 8 Temasek Boulevard

Sydney

20 Martin Place

Porto

2609 Avenida da Boavista
Calls are made only from Portugal

Tbilisi

Revaz Tabukashvili Str., N 45, area N 7