New rules governing the issuance of digital assets have been announced by Nigeria’s securities regulator. Platforms that offer digital assets must also register under the new regulations.
Application for Initial Assessment
The Nigerian Securities and Exchange Commission (SEC) has issued new guidelines for the issuance of digital assets as securities. The guidelines also cover the registration requirements for platforms that supply digital assets (DAOPs). The new set of guidelines that the commission just released covers virtual asset service providers (VASPs) and digital asset exchanges.
Individuals or businesses intending to generate cash through a coin offering or a private sale of tokens must first submit an initial “assessment form and the draught white paper,” according to the new regulations. According to the commission’s draught white paper, a firm requesting a license to operate must provide “full and updated information regarding the initial digital asset offering projects, business plan, and feasibility assessment.
The draught document must also include a description of the initial digital asset offering, the value of each token, and the benefits that the buyer will receive. According to the SEC, the use and allocation of the funds must also be stated.
The commission stated that white papers for initial digital asset offering initiatives should include a disclaimer saying that the material does not constitute an offer to sell. The SEC will analyze the appropriate documentation and make a determination after it has been filed.
The Commission will analyze it within 30 days of receiving it to decide whether the proposed digital asset is a “security” under the Investment and Securities Act 2007.
The SEC will notify the issuer of its decision within five days of the review’s end.
The commission not only explains the processes that prospective digital currency issuers must take, but also identifies the standards and limitations that must be met. The new guidelines state that an applicant wishing to register as a DAOP must pay a filing charge of $241, a processing fee of $724, and a registration fee of $72,430.
A DAOP “must maintain a register of initial token holders who subscribed for the virtual assets/digital tokens during the offer period and enter into the register,” according to the commission’s 54-page revised regulations paper. An “Issuer shall not be hosted concurrently on several DAOP or on an equity crowdfunding platform,” according to the SEC.
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