VASP Licensing: Your Guide to Getting Crypto Business Approved

When dealing with VASP licensing, the official permission a crypto business needs to operate legally in a jurisdiction. Also known as Virtual Asset Service Provider registration, it ensures firms meet anti‑money‑laundering standards and consumer protection rules.

In Nigeria, the Securities and Exchange Commission (SEC, the agency that issues VASP licences and monitors compliance) drives the local licensing framework. The SEC requires a clear AML/KYC, anti‑money‑laundering and know‑your‑customer program that verifies user identities and tracks suspicious transactions before any licence is granted. This triple – VASP licensing, AML/KYC, SEC – forms the core compliance triangle for crypto firms in the region.

Understanding VASP licensing starts with capital. Nigerian law sets a minimum paid‑up capital that varies by service type – custodial wallets need more than exchange platforms. Alongside capital, applicants must submit a detailed business plan, risk‑assessment matrix, and proof of qualified staff. These documents show the regulator that the business can sustain operations and handle user funds safely.

Another piece of the puzzle is the ARIP program – the Additional Regulated Intermediary Programme introduced by the SEC to streamline licensing for smaller players. ARIP, a fast‑track process that reduces paperwork and shortens approval time for eligible firms lets startups focus on product development rather than lengthy bureaucracy. Companies that qualify for ARIP still must meet the same AML/KYC standards, but they benefit from lower capital thresholds.

The application process itself follows a predictable flow: submit the online form, upload supporting documents, pay the licensing fee, and await the SEC’s technical review. If the review flags gaps, the regulator issues a remediation notice, and the applicant has a limited window to fix issues. Once approved, the VASP receives a licence number that must appear on all marketing material and on the platform’s user‑onboarding screens.

Compliance doesn’t stop at approval. Ongoing monitoring, periodic audits, and real‑time transaction reporting are mandatory. The SEC conducts random inspections and can suspend or revoke licences for breaches. Building a solid internal compliance team and investing in automated monitoring tools helps maintain good standing and avoids costly penalties.

Below you’ll find a curated set of articles that walk through each step in detail – from Nigeria’s specific capital requirements to the nitty‑gritty of AML/KYC documentation. Whether you’re launching a new exchange or expanding an existing service, these resources give you the practical insight you need to navigate VASP licensing successfully.