The Nigerian securities regulator has introduced new guidelines that govern the issuing of digital belongings. The brand new guidelines additionally embody registration necessities for platforms that supply digital belongings.
Preliminary Evaluation Submitting
The Nigerian Securities and Alternate Fee (SEC) has introduced new guidelines that govern the issuing of digital belongings as securities. The rules additionally embody guidelines on the registration necessities for digital belongings providing platforms (DAOPs). Digital asset service suppliers (VASPs) and digital belongings exchanges are lined within the new algorithm that had been just lately printed by the fee.
In keeping with the new rules, people or entities looking for to boost funds by way of a coin providing or a non-public 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 relating to the preliminary digital asset providing tasks, marketing strategy and feasibility research.”
The draft doc should additionally give a short description of the preliminary digital asset providing, the worth of every token, and the privileges it offers to the client. The use and allocation of the funds should even be acknowledged therein, the SEC stated.
White Paper Disclaimer
Regarding white papers of preliminary digital asset providing tasks, the fee stated the doc ought to have a disclaimer stating this doesn’t symbolize a suggestion to promote. As soon as the required documentation has been filed, the SEC will overview it to make a willpower.
[The Commission shall] overview identical inside 30 days from receipt to find out whether or not the digital asset proposed to be supplied, constitutes a ‘safety’ below the Funding and Securities Act 2007.
After a willpower is made, the SEC will talk this to the issuer inside 5 days of the conclusion of the overview.
Moreover explaining the steps potential issuers of digital currencies should take, the fee additionally lists the necessities and limits that should 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 preserve a register of preliminary token holders who subscribed for the digital belongings/digital tokens through the provide interval and enter into the register.” On utilizing one other platform as a bunch, the SEC stated an “Issuer shall not be hosted concurrently on a number of DAOP or on an fairness crowdfunding platform.”
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