Nigeria issues regulations on cryptocurrency, crypto startups, ICOs, others

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The Securities and Exchange Commission (SEC) in Nigeria has issued regulatory guidelines for digital currencies and crypto-based companies or startups. The aim, according to Nigeria’s capital market and investment regulator, is to protect investors and create standards for ethical practices.
Also, the Commission will regulate all Digital Assets Token Offerings (DATO), Initial Coin Offerings, Security Token ICOs , and other Blockchain-based offers within Nigeria by Nigerian issuers or by foreign issuers targeting Nigerian investors.
According to a statement released today, September 14, 2020, the SEC will be taking a three-pronged approach to regulate innovation in the crypto sector; these are: safety, market deepening, and providing solutions to problems.
The Commission states that it will regulate crypto-token or crypto-coin investments when the character of the investments qualifies as securities transactions.

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Every crypto asset in Nigeria will be treated as securities, unless the company or startup proves otherwise. If the SEC determines that a digital asset is not a security, it will not regulate it.
Digital assets are to be registered

According to the Commission, crypto issuers or sponsors will be required to register their digital assets with the Commission.
First, they are to make an initial assessment filing with the Commission to …

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