A digital asset is a token that represents assets such as a debt or equity claim on the issuer, and thus by default is under the purview of the Securities and Exchange Commission of Nigeria, the regulator said in a new rulebook published over the weekend.
- The Nigerian SEC’s “New Rules on Issuance, Offering Platforms and Custody of Digital Assets” circular looks to give regulatory clarity to the booming market, which is growing dramatically year-on-year in a nation of tech-comfortable people.
- Exchanges registered in-country need to be capitalized with at least NGN 500,000 ($1,204) in paid-up capital, and post a fidelity bond for at least 25% of this amount, according to the rules.
- The SEC also requires exchanges to be “fair, reasonable, and transparent” with their fees.
- Registered exchanges will also need to provide the SEC with a list of assets they intend to trade and get a “no objection” letter for each asset.
- In September, Nigeria’s SEC said it had established a specialized division to study crypto investments.
