In a move to enhance its position, the Nigerian Securities and Exchange Commission (SEC Nigeria) has proposed to issue a series of new regulations to control the virtual assets market, setting new benchmarks for investors private and business.
Accordingly, organizations that want to operate in this field must register with the Nigerian SEC and demonstrate that they meet legal, financial and business operation criteria. The new regulations emphasize the need for a fixed business address in Nigeria and require the head of the business or equivalent management position to reside in Nigeria. The SEC also requires a high standard of professional ethics and professional competence for key management personnel, especially those with no criminal record of fraud and violations of compliance with current market regulations onion.
The new regulations also apply to organizations that want to raise capital through token issuance such as Initial Coin Offerings (ICOs) and Security Token Offerings (STOs). These organizations need to submit an evaluation form and project white paper to determine whether the proposed assets are “securities” under the Nigerian Investment and Securities Act 2007. Additionally, the SEC sets specific requirements for different types of platforms, including Virtual Asset Issuance Platforms (DAOPs), Virtual Asset Exchanges (DAXs), and Virtual Asset Custody Platforms (DACs). Which emphasizes operating registration and proving solid financial capacity.
The new decision is considered an important step in improving market transparency and user safety in Nigeria, while also shaping the future of virtual assets in this country. The goal is to transform Nigeria into a leading digital financial hub, attracting foreign investment and encouraging innovation. It also aims to improve financial access for people and help Nigeria escape FATF's Enhanced Monitoring List (Gray List).
As the global virtual asset market continues to grow, Nigeria's adoption and regulation could provide a model for other countries looking to regulate this emerging asset class, while still encouraging innovation new and growing. Previously in February, Nigerian authorities blocked access to exchanges such as Binance, Kraken and Coinbase, amid a crackdown on currency speculation and the severe devaluation of the local currency. bad.