SEC of Nigeria: All crypto assets is as forms of security until proven otherwise

In an official announcement on Friday, the Securities and Exchange Commission (SEC) of Nigeria announced it would consider cryptocurrency and ICO (or other token offerings) as securities until proven opposite.

Nigeria’s SEC: All cryptocurrency are securities

Nigeria’s financial watchdog said all crypto assets would fall under the regulation that covers securities exchanges and transactions on exchanges.

The statement states:

“The burden of proof will be on issuers themselves to show the regulator, in an initial assessment filing, how their particular digital asset doesn’t count as a security.”

They added:

“The position of the Commission is that virtual crypto assets are securities unless proven otherwise.”

The SEC confirms all forms of digital asset offering taking place in the country, as well as individuals and companies involved, operating for themselves or on behalf of others, will follow the guidelines and approve their regulations.

As well as clarifying that there are no uncertain terms that the authoritative cryptocurrency applies, this move could also cover all the bases and ensure even services that do not meet the criteria such as delivery. Securities sales are still registered and filed with the SEC.

It could also be an attempt to control overseas offerings better – issuers based in countries that have no reciprocal investment deals with Nigeria, such as the US, may be required to set up a local branch in the country.

Nigeria is not the first African country to regulate the provision of digital assets with existing stock guidelines. South Africa published a policy paper in April that called for all token offerings to adhere to traditional regulation as much as possible.

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