A digital asset is a token representing assets such as debt or equity claims on the issuer. The Securities and Exchange Commission of Nigeria is therefore responsible for digital assets, the regulator stated 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.
According to the rules, exchanges that are registered in-country must be capitalized with NGN 500,000 ($1,204), and post a fidelity guarantee for at least 25%.
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.