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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 brand new guidelines additionally embody registration necessities for platforms that provide digital property.

Preliminary Evaluation Submitting

The Nigerian Securities and Change Fee (SEC) has introduced new guidelines that govern the issuing of digital property as securities. The rules additionally embody guidelines on the registration necessities for digital property providing platforms (DAOPs). Digital asset service suppliers (VASPs) and digital property exchanges are coated within the new algorithm that have been just lately printed by the fee.

In line with the brand new rules, people or entities looking for to boost funds by way of a coin providing or a personal sale of tokens should first submit an preliminary “evaluation kind and the draft white paper.” Within the draft white paper, the fee says an entity looking for permission to function should furnish it with “full and present data concerning the preliminary digital asset providing initiatives, marketing strategy and feasibility research.”

The draft doc should additionally give a quick 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 acknowledged therein, the SEC mentioned.

White Paper Disclaimer

Regarding white papers of preliminary digital asset providing initiatives, the fee mentioned the doc ought to have a disclaimer stating this doesn’t symbolize a proposal to promote. As soon as the required documentation has been filed, the SEC will assessment it to make a dedication.

[The Commission shall] assessment similar inside 30 days from receipt to find out whether or not the digital asset proposed to be provided, constitutes a ‘safety’ below the Funding and Securities Act 2007.

After a dedication is made, the SEC will talk this to the issuer inside 5 days of the conclusion of the assessment.

Apart from 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 looking for to register as a DAOP, the brand new guidelines say they have to pay a submitting charge equal to $241, a processing charge of $724, and a registration charge of $72,430.

Elsewhere in its 54-page new guidelines doc, the fee says a DAOP “shall keep a register of preliminary token holders who subscribed for the digital property/digital tokens through the supply interval and enter into the register.” On utilizing one other platform as a bunch, the SEC mentioned an “Issuer shall not be hosted concurrently on a number of DAOP or on an fairness crowdfunding platform.”

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Terence Zimwara

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







Picture Credit: Shutterstock, Pixabay, Wiki Commons

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