Nigeria issues new digital assets regulations

Wednesday 18 May 2022 14:29 CET | News

Nigeria’s Securities and Exchange Commission has released new rules to guide the issuance, custody, and exchange of digital assets, while also classifying them as securities.

According to the rules, entities seeking to offer crypto services or products in the country will have to get a virtual assets service provider (VASP) license. But they may also require other licenses based on the category or industry they operate in. 

VASP license has several obligations, including employing anti-money laundering and combating financing terrorism standards. It’ll also include disclaimers and require users to sign a risk acknowledgment form before using. The rules also require exchanges providing services to Nigerians to secure a permit. The exchanges will also have to provide reports regularly about their trading and submit periodic compliance reports.

Exchanges also need the permission of the SEC to list any asset. Thus, they’ll have to apply for the listing, and the Commission must have no objection to such assets. The SEC also provided for initial coin offerings and token issuance in general. Companies operating in the country or servicing Nigerians will need first to register their intent to issue a token. Then, it’s up to the Commission to issue approval. For tokens deemed as securities, the issuer must also follow securities laws.

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Keywords: digital assets, regulation, central bank, security token
Categories: DeFi & Crypto & Web3
Companies: Securities and Exchange Commission (Nigeria)
Countries: Nigeria
This article is part of category

DeFi & Crypto & Web3

Securities and Exchange Commission (Nigeria)

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