The Securities and Exchange Commission of Nigeria (SEC Nigeria) has released a new draft regulation of cryptocurrencies and other forms of digital assets in the country. The document, released on September 14, states that digital assets provide alternative investment opportunities for the public, but at the same time must be implemented in a manner that protects the interests of investors and ensures the integrity of the market.
The regulator said the new clarifications are not intended to suppress innovation, but to create standards that encourage ethical norms. The SEC Nigeria has followed the steps of many regulators around the world by classifying all forms of digital assets into three main categories: crypto assets, utility tokens, and security tokens.
The Commission also mentioned that all forms of token sale, including Digital Asset Token Offering (DATO), Initial Coin Offering (ICO), Security Token Offering (STO), and other domestic blockchain-based digital asset offerings are now regulated. Companies that already offer such services will have three months to apply for an initial assessment or apply for registration to work in the country.
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