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.
Deposit the initial evaluation
The Nigerian Securities and Exchange Commission (SEC) has announced new rules governing the issuance of digital assets as securities. The regulations also include rules regarding registration requirements for Digital Asset Offering Platforms (DAOPs). Virtual asset service providers (VASPs) and digital asset exchanges are covered in the new set of rules recently published by the commission.
According to the new regulations, individuals or entities seeking to raise funds by offering coins or privately selling tokens must first submit an “initial evaluation form and draft white paper.” In its draft white paper, the committee says that an entity seeking permission to operate must provide it with “complete and up-to-date information regarding initial digital asset offering projects, business plans and feasibility studies.”
The draft document should also provide a brief description of the initial digital asset offer, the value of each token, and the privileges it grants to the buyer. The Securities and Exchange Commission said the use and allocation of funds must also be mentioned.
White Paper Disclaimer
Regarding the white papers on the initial digital asset offering projects, the committee said the document should contain a disclaimer stating that this does not constitute an offer to sell. Once you submit the required documents, the Securities and Exchange Commission will review them to make a decision.
[The Commission shall] Self-review within 30 days of receipt to determine whether a proposed digital asset constitutes a “security” under the Securities and Investments Act 2007.
After the decision is made, the Securities and Exchange Commission (SEC) will report this to the issuer within five days of the review ending.
Besides explaining the steps potential issuers of cryptocurrency should take, the committee also lists requirements and limits that must be adhered to. For an applicant seeking to register as a DAOP, the new rules state that they must pay a registration fee of $241, a processing fee of $724, and a registration fee of $72,430.
Elsewhere in the new 54-page rule document, the committee says that the DAOP “shall keep a record of the holders of initial tokens who subscribe to virtual assets/digital tokens during the offer period and enter into the registry.” When using another platform as a host, the SEC said, “The issuer will not be hosted concurrently on multiple DAOPs or on an equity crowdfunding platform.”
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