Regulatory Alerts2024-06-04
Arip Framework For The Onboarding Of Vasps 4624
The Securities and Exchange Commission (SEC) of Nigeria has introduced an Accelerated Regulatory Incubation Program (ARIP) to facilitate the onboarding of Virtual Assets Service Providers (VASPs) and other Digital Investments Service Providers (DISPs). This framework aims to streamline the registration process for qualified entities, allowing them to receive preliminary approval pending the full operationalization of Digital Assets Rules. The program will provide guidance on regulatory demands and enable the SEC to better understand digital asset business models, ensuring adequate measures for market integrity, investor protection, and anti-money laundering. Entities seeking to participate in the ARIP must meet specific eligibility criteria, including being incorporated in Nigeria, conducting investments and securities business, and seeking registration or having pending virtual asset-related applications. The application process involves an initial assessment phase and a subsequent application phase, with successful applicants receiving an approval-in-principle to operate within the ARIP for a specified period. The framework also outlines various operational requirements, reporting obligations, and potential penalties for non-compliance, as well as conditions for termination or removal from the program. The ARIP is designed to provide a pathway for participants to transition to full registration upon meeting the Commission's requirements. It includes provisions for the adoption of new regulations based on insights gained from the ARIP and aims to ensure that the framework is not used to circumvent existing rules and regulatory requirements.