Nigeria to treat crypto assets & token offerings as sorts of security until proven otherwise.
Within a recent official report, the SEC [Securities and Exchange Commission] added that all cryptocurrency assets will fall into the regulation that covers securities exchanges & transactions on exchanges.
While Explaining further, it added that the burden of proof will be on issuers themselves to point out the regulator, in an initial assessment filing, how their particular virtual asset doesn’t count as security. SEC added:
“The position of the Commission is that virtual cryptocurrency assets are securities unless proven otherwise.”.
The SEC confirmed all sorts of virtual asset offering operating within the country, also as participating individuals & firms, acting for themselves or on behalf of others, will be subjected to its regulatory guidelines and approval.
As well as clarifying in no uncertain terms whose jurisdiction cryptocurrencies fall beneath, the move might additionally cover all bases and ensure even offerings that do not meet the standards as a securities sale still register and file with the SEC.
It may even be an effort to better manage overseas offerings. Issuers that are based in countries without reciprocal investment agreements with Nigeria, like the United States, might be compelled to line up a native branch within the country.
Nigeria is not the primary African country aligning digital asset offerings with existing securities guidance. South Africa published a policy paper earlier in April that referred all token offerings to stick to traditional regulations.