Nigerian SEC Announces New Rules Governing Issuance of Digital Assets – Regulation Bitcoin News
The Nigerian Securities Regulator has announced new rules that govern the issuance of digital assets. The new rules also include registration requirements for platforms that offer digital assets.
Filing of initial assessment
Nigeria’s Securities and Exchange Commission (SEC) has announced new rules that govern the issuance of digital assets as securities. The regulation also includes rules on registration requirements for digital asset offering platforms (DAOPs). Virtual Asset Service Providers (VASPs) and digital asset exchanges are covered by the new set of rules recently released by the commission.
According to new regulations, individuals or entities seeking to raise funds through a coin offering or private token sale must first submit an initial “Assessment Form and Draft White Paper”. In the draft white paper, the commission states that an entity seeking authorization to operate must provide it with “complete and up-to-date information regarding the initial digital asset offering plans, business plan and ‘feasibility study”.
The draft document should also give a brief description of the initial digital asset offering, the value of each token, and the privileges it confers on the buyer. The use and allocation of the funds must also be disclosed therein, the SEC said.
White Paper Disclaimer
Regarding white papers of proposed initial digital asset offerings, the commission said the document should include a disclaimer stating that it does not represent an offer to sell. Once the required documentation is filed, the SEC will review it to make a decision.
[The Commission shall] review it within 30 days of receipt to determine whether the digital asset offered to be offered constitutes a “security” under the Investments and Securities Act 2007.
Once the decision is made, the SEC will communicate it to the issuer within five days of the conclusion of the review.
In addition to explaining the steps that potential issuers of digital currencies must follow, the commission also lists the requirements and limits that must be met. For an applicant wishing to register as a DAOP, the new rules state that they must pay an application fee equivalent to $241, a processing fee of $724 and a registration fee of $72,430.
Elsewhere in its new 54-page rules document, the commission states that a DAOP “must maintain a record of the initial token holders who subscribed to the virtual assets/digital tokens during the offering period and enter the record.” . Regarding using another platform as a host, the SEC said an “issuer should not be hosted on multiple DAOPs or on one crowdfunding platform simultaneously.”
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