Nigerian SEC Announces New Rules Governing Issuance of Digital Assets

The Nigerian securities regulator has declared new principles that govern the issuing of electronic assets. The new procedures also contain registration necessities for platforms that provide electronic belongings.

Original Evaluation Submitting

The Nigerian Securities and Trade Commission (SEC) has introduced new guidelines that govern the issuing of digital assets as securities. The laws also incorporate guidelines on the registration demands for electronic property featuring platforms (DAOPs). Virtual asset services companies (VASPs) and electronic assets exchanges are coated in the new set of principles that have been a short while ago revealed by the fee.

In accordance to the new laws, individuals or entities trying to get to elevate money through a coin providing or a private sale of tokens will have to initial submit an first “assessment type and the draft white paper.” In the draft white paper, the commission says an entity searching for authorization to run will have to furnish it with “complete and current information about the first electronic asset giving jobs, enterprise program and feasibility study.”

The draft doc have to also give a short description of the initial electronic asset providing, the value of every single token, and the privileges it presents to the buyer. The use and allocation of the money should also be stated therein, the SEC explained.

White Paper Disclaimer

Regarding white papers of first electronic asset featuring tasks, the fee stated the doc really should have a disclaimer stating this does not depict an offer you to offer. As soon as the expected documentation has been filed, the SEC will evaluate it to make a willpower.

[The Commission shall] critique exact in 30 times from receipt to decide regardless of whether the digital asset proposed to be supplied, constitutes a ‘security’ below the Investment and Securities Act 2007.

Just after a resolve is produced, the SEC will connect this to the issuer in five days of the summary of the assessment.

Apart from describing the measures possible issuers of electronic currencies should get, the commission also lists the requirements and limitations that have to be adhered to. For an applicant trying to get to sign up as a DAOP, the new guidelines say they will have to shell out a filing charge equal to $241, a processing charge of $724, and a registration cost of $72,430.

Somewhere else in its 54-web site new guidelines document, the commission says a DAOP “shall manage a register of original token holders who subscribed for the digital property/electronic tokens throughout the supply time period and enter into the sign-up.” On working with an additional platform as a host, the SEC stated an “Issuer shall not be hosted concurrently on various DAOP or on an equity crowdfunding system.”

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Terence Zimwara

Terence Zimwara is a Zimbabwe award-winning journalist, creator and writer. He has written extensively about the financial problems of some African nations as well as how electronic currencies can deliver Africans with an escape route.