Nigeria equated cryptocurrency with securities

Nigeria equated cryptocurrency with securities

Nigerian Securities and Exchange Commission (SEC) published new rules for regulating cryptocurrencies, which classified them as securities.
According to the 54-page document, digital assets are analogous to a stock or an issuer’s debt claim.
As the regulator explains, crypto assets provide alternative investment opportunities and are subject to the same requirements that apply to stock exchanges and their transactions. If an issuer wishes to avoid such classification of its instruments, it must submit a relevant request, on the basis of which a check will be carried out.
“The position of the Commission is that virtual crypto assets are securities unless proven otherwise. The task of proving that the proposed crypto asset is not a security and, therefore, does not fall under the jurisdiction of the agency, lies with the issuer or sponsor of the said asset,” the document says.
The rules also include registration requirements for trading platforms. Specifically, exchanges must have a minimum paid-up capital of 500,000,000 naira (approximately $1.2 million).
Registered sites are required to provide the regulator with a list of assets and obtain approval for each. The SEC is asking exchanges to adhere to “fair, reasonable and transparent” fee policies.
In 2020, the SEC recognized crypto assets as securities with a clause “unless proven otherwise.” Digital assets that are removed from the definition of a security will receive the status of an exchange commodity and will no longer be of interest to the regulator. He argues that the purpose of the new requirements is not to deter innovation, but to create a fair and efficient market.

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