Nigerian SEC Announces New Rules Governing Issuance of Digital Assets
The Nigerian securities regulator has announced new rules that govern the issuing of digital assets. The new rules also include registration requirements for platforms that offer digital assets. Initial Assessment Filing
The Nigerian Securities and Exchange Commission (SEC) has announced new rules that govern the issuing of digital assets as securities. The regulations also include rules on the registration requirements for digital assets offering platforms (DAOPs). Virtual asset service providers (VASPs) and digital assets exchanges are covered in the new set of rules that were recently published by the commission.
According to the new regulations, individuals or entities seeking to raise funds via a coin offering or a private sale of tokens must first submit an initial “assessment form and the draft white paper.” In the draft white paper, the commission says an entity seeking permission to operate must furnish it with “complete and current information regarding the initial digital asset offering projects, business plan and feasibility study.”
The draft document must also give a brief description of the initial digital asset offering, the value of each token, and the privileges it gives to the buyer. The use and allocation of the funds must also be stated therein, the SEC said.
White Paper Disclaimer
Concerning white papers of initial digital asset offering projects, the commission said the document should have a disclaimer stating this does not represent an offer to sell. Once the required documentation has been filed, the SEC will review it to make a determination. [The Commission shall] review same within 30 days from receipt to determine whether the digital asset proposed to be offered, constitutes a ‘security’ under the Investment and Securities Act 2007.
After a determination is made, the SEC will communicate this to the issuer within five days of the conclusion of the review.
Besides explaining the steps prospective issuers of digital currencies must take, the commission also lists the requirements and limits that must be adhered to. For an applicant seeking to register as a DAOP, the new rules say they must pay a filing fee equivalent to $241, a processing fee of $724, and a registration fee of $72,430.
Elsewhere in its 54-page new rules document, the commission says a DAOP “shall maintain a register of initial token holders who subscribed for the virtual assets/digital tokens during the offer period and enter into the register.” On using another platform as a host, the SEC said an “Issuer shall not be hosted concurrently on multiple DAOP or on an equity crowdfunding platform.” Tags in this story Digital Assets Offering Platforms, Digital Tokens, initial digital asset offering, Investment and Securities Act, Nigeria Securities and Exchange Commission, virtual asset service providers (VASPs), virtual assets
What are your thoughts on this story? Tell us what you think in the comments section below. Terence Zimwara
Terence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route. Global Regulators Consider Launching a Joint Body to Coordinate Crypto Rules REGULATION | 6 hours ago SEC Commissioner Expects Tighter Stablecoin Regulation — Yellen Says Stablecoins Not Real Threat to Financial Stability REGULATION | 8 hours ago
Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleGlobal Regulators Consider Launching a Joint Body to Coordinate Crypto Rules Next articleSeaside Resort in Slovenia Promotes Itself With NFTs Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItRipple CEO: SEC Lawsuit Over XRP "Has Gone Exceedingly Well"
The CEO of Ripple Labs says that the lawsuit brought by the U.S. Securities and Exchange Commission (SEC) against him and his company over XRP "has gone exceedingly well." He stressed: "This case is important, not just for Ripple, it’s ... read more.Following a Brief Fee Spike, Gas Prices to Move Ethereum Drop 76% in 12 Days Bill ‘On Digital Currency’ Caps Crypto Investments for Russians, Opens Door for Payments Microbt Reveals Latest Bitcoin Mining Rigs — Machines Produce up to 126 TH/s With Custom 5nm Chip Design Terra"s Algorithmic Dollar-Pegged Crypto UST Is Now the Third-Largest Stablecoin