Woofun AI reports that Nigeria's Securities and Exchange Commission (SEC) has expanded its regulatory perimeter to encompass any crypto business serving Nigerian residents, regardless of incorporation location, if operations occur via digital channels.

The jurisdictional reach extends to offshore exchanges and foreign stablecoin issuers targeting the local market, compelling them to appoint a local representative and adhere to SEC-prescribed reserve, liquidity, redemption-support, and other prudential requirements.

Capital thresholds vary significantly by license class: Digital Asset Exchanges and Custodians face a ₦2 billion minimum with a ₦30 million registration fee, while Digital Asset Platforms, Offering Platforms, and Real World Asset Tokenization platforms require ₦500 million; the general VASP category demands ₦200 million capital and a ₦15 million fee.

Per Woofun AI, Schedule I mandates a fidelity insurance bond covering at least 25% of minimum paid-up capital, while Custodians must store 80% of client assets in cold storage, restricting hot and warm wallets to essential operational needs.

This framework forces offshore providers to establish a local compliance path, placing the steepest stated capital test on exchanges and custodians, while Stablecoin issuers face a distinct balance-sheet burden tied to underlying asset support.