Nigeria’s SEC Affirms All Digital Assets Are Securities in New Rulebook

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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 (US$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.