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

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

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

Initial Assessment Filing

The Nigerian Securities and Exchange Commission (SEC) has introduced new guidelines that govern the issuing of digital property as securities. The laws additionally embody guidelines on the registration necessities for digital property providing platforms (DAOPs). Virtual asset service suppliers (VASPs) and digital property exchanges are lined within the new set of guidelines that have been just lately revealed by the fee.

According to the brand new laws, people or entities searching for to boost funds by way of a coin providing or a non-public sale of tokens should first submit an preliminary “assessment form and the draft white paper.” In the draft white paper, the fee says an entity searching for permission to function should furnish it with “complete and current information regarding the initial digital asset offering projects, business plan and feasibility study.”

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 mentioned.

White Paper Disclaimer

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

[The Commission shall] assessment identical inside 30 days from receipt to find out whether or not the digital asset proposed to be provided, constitutes a ‘security’ 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 searching for to register as a DAOP, the brand new guidelines say they have 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 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 utilizing one other platform as a bunch, the SEC mentioned an “Issuer shall not be hosted concurrently on multiple DAOP or on an equity crowdfunding platform.”

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Terence Zimwara

Terence Zimwara is a Zimbabwe award-winning journalist, writer and author. He has written extensively concerning the financial troubles of some African international locations in addition to how digital currencies can present Africans with an escape route.

Image Credits: Shutterstock, Pixabay, Wiki Commons

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