Nigerian SEC Announces New Rules Governing Issuance of Digital Assets – Regulation Bitcoin News

New rules have been announced by the Nigerian Securities Regulator to govern digital asset issuing. These new regulations also require registration for platforms offering digital assets.

First Assessment Form

Nigerian Securities and Exchange Commission has published new regulations that will govern the issue of digital assets. Regulations also cover the requirements to register digital assets-offering platforms (DAOPs). The new rules, published recently by the Commission, cover virtual asset service providers (VASPs), and digital assets trading platforms.

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.”

A draft must include a description of the initial digital assets offered, their value, and any privileges that the buyer receives. SEC also stated that the draft document must include details about the use of and the allocation of funds.

Disclosure: White Paper

In regards to white papers for digital asset-offering projects in the initial stages, the commission recommended that the document contain a disclaimer to state this is not an offer of sale. The SEC will examine the documentation once it has been submitted and make a decision.

[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.

Within five days after the end of the review, the SEC will notify the issuer.

The commission lists all the conditions and limitations that need to be followed, as well as the steps they must follow. The new regulations require applicants to apply to become DAOPs to pay a $241 filing fee, a $724 processing fee, and a $72,430 registration fee.

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.”

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Terence Zimwara

Terence Zimwara, a Zimbabwean journalist, writer and author who has been awarded the Zimbabwe Booker Prize. His writings have covered the economic problems of several African countries and how digital currency can offer an escape route.