The Nigerian securities regulator has announced new rules governing the issuance of digital assets. The new rules also include registration requirements for platforms offering digital assets.
Preliminary assessment filing
The Nigerian Securities and Exchange Commission (SEC) has announced new rules governing the issuance of digital assets in the form of securities. The regulation also includes rules regarding registration requirements for digital asset offering platforms (DAOPs). New rules recently issued by the Commission cover virtual asset service providers (VASPs) and digital asset exchanges.
according to new rule, individuals or entities seeking to raise funds through a token offering or private sale of tokens must first submit an initial “assessment form and draft white paper.” In the draft white paper, the committee stated that entities seeking a license to operate must provide it with “complete and up-to-date information on initial digital asset offerings, business plans and feasibility studies.”
The draft document must also briefly describe the initial digital asset offering, the value of each token and the privileges it confers on the buyer. The SEC said the use and distribution of those funds must also be described in it.
White Paper Disclaimer
Regarding the white paper for the initial digital asset offering project, the committee stated that the document should contain a disclaimer stating that it does not represent an offer to sell. After the required documents are filed, the SEC will review them for a decision.
[The Commission shall] A review is conducted within 30 days of receipt to determine whether the digital asset proposed to be offered constitutes a “securities” under the Investments and Securities Act of 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 digital currency issuers must take, the committee also lists requirements and restrictions that must be followed. For applicants seeking to register as a DAOP, the new rules state they must pay the equivalent of an application fee of $241, a processing fee of $724 and a registration fee of $72,430.
Elsewhere in its 54-page new rules document, the commission said the DAOP “shall maintain a register of initial token holders who subscribed to virtual assets/digital tokens and entered the register during the offer period.” In using another platform as When hosting, the SEC stated that “issuers may not host multiple DAOPs or equity crowdfunding platforms at the same time.”
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