The Securities and Exchange Commission of Nigeria has officially defined digital assets under its regulatory umbrella. In a statement made on September 14th the Nigerian Securities and Exchange Commission, or SEC, defined tokens and coins. The commission stated that these digital assets, which provide “alternative investment opportunities”, would be classified into four different categories for regulatory oversight.
The Nigerian SEC stated that virtual crypto assets are securities unless proven otherwise. As per the announcement, Nigerian regulators will register and approve all digital assets, treating cryptocurrencies and utility tokens as commodities. The SEC stated it would not be responsible for overseeing utility token spot trading and transactions. The regulatory body said it would view security tokens as securities, and derivatives and investment funds as “specified investments.” As per the statement, “The general objective of regulation is not to hinder technology or stifle innovation, but to create standards that encourage ethical practices that ultimately make for a fair and efficient market.”
Blockchain and crypto firms releasing Digital Assets Token Offerings, or DATOs, Initial Coin Offerings, or ICOs, and Security Token Offerings, or STOs, operating in Nigeria prior to the implementation of these new regulations will have three months to register with the SEC.