Nigerian SEC Announces New Rules Governing Issuance of Digital Assets

The Nigerian securities regulator has introduced new guidelines that govern the issuing of digital belongings. The new guidelines additionally embody registration necessities for platforms that provide digital belongings.

Initial Assessment Filing

The Nigerian Securities and Exchange Commission (SEC) has introduced new guidelines that govern the issuing of digital belongings as securities. The rules additionally embody guidelines on the registration necessities for digital belongings providing platforms (DAOPs). Virtual asset service suppliers (VASPs) and digital belongings exchanges are lined within the new algorithm that have been not too long ago printed by the fee.

According to the new regulations, people or entities looking for to lift funds through a coin providing or a personal sale of tokens should first submit an preliminary “evaluation type and the draft white paper.” In the draft white paper, the fee says an entity looking for permission to function should furnish it with “full and present data relating to the preliminary digital asset providing tasks, marketing strategy and feasibility examine.”

The draft doc should additionally give a short description of the preliminary digital asset providing, the worth of every token, and the privileges it offers to the customer. The use and allocation of the funds should even be said therein, the SEC stated.

White Paper Disclaimer

Concerning white papers of preliminary digital asset providing tasks, the fee stated the doc ought to have a disclaimer stating this doesn’t signify a suggestion to promote. Once the required documentation has been filed, the SEC will assessment it to make a willpower.

[The Commission shall] assessment similar inside 30 days from receipt to find out whether or not the digital asset proposed to be provided, constitutes a ‘safety’ underneath the Investment and Securities Act 2007.

After a willpower is made, the SEC will talk this to the issuer inside 5 days of the conclusion of the assessment.

Besides explaining the steps potential issuers of digital currencies should take, the fee additionally lists the necessities and limits that have to be adhered to. For an applicant looking for to register as a DAOP, the brand new guidelines say they need to pay a submitting payment equal to $241, a processing payment of $724, and a registration payment of $72,430.

Elsewhere in its 54-page new guidelines doc, the fee says a DAOP “shall keep a register of preliminary token holders who subscribed for the digital belongings/digital tokens in the course of the supply interval and enter into the register.” On utilizing one other platform as a number, the SEC stated an “Issuer shall not be hosted concurrently on a number of DAOP or on an fairness crowdfunding platform.”

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