Traders from Nigeria can breathe a sigh of relief. The regulatory authority there is clarifying its position on Bitcoin and Co.
Nigeria’s Securities and Exchange Commission (SEC) has officially recognized Bitcoin and other crypto assets. The Securities and Exchange Commission of the West African country issued a statement to this effect on September 14.
The SEC divided digital assets into four categories. Crypto currencies such as Bitcoin and utility tokens are considered commodities, while security tokens are considered securities. Derivatives and investment funds with a cryto reference are considered by Nigerian regulators as a “specified investment. The regulation of crypto-markets is to be carried out in a manner “compatible with investor protection, public interest, market integrity and transparency”.
Registration requirement for Coin Offerings
In the future, when crypto-assets are registered, the SEC will consider them as securities unless the issuer of the assets can prove otherwise. The resulting registration process consists of two steps. First, the issuers submit an initial assessment form for the verification of the securities status. If the SEC actually classifies the asset as a security, it must also be registered.
The registration requirement also applies to Initial Coin Offerings (ICOs), Security Token Offerings (STOs) and other sales of block-chain-based assets originating from Nigeria or open to investors in the country. Existing offers have three months to submit a registration application.