The Country That Created Nollywood Has Finally Spoken Crytpo
15 Sep 2020 — Lights, camera, action – #Crypto! The country that created Nollywood, has finally spoken crytpo.
Being consistently ranked 1st on the topic of cryptocurrency, according to recent Google Trend data, the spotlight is on the Securities and Exchange Commission of Nigeria (SEC) with the release of its definition on #digitalassets and their classification and treatment. SEC will regulate crypto-token or crypto-coin investments when the character of the investments qualifies as securities transactions.
The position of the Commission is that virtual crypto assets are securities, unless proven otherwise. Thus, the burden of proving that the crypto assets proposed to be offered are not securities and therefore not under the jurisdiction of the SEC, is placed on the issuer or sponsor of the said assets.
All Digital Assets Token Offering, Initial Coin Offerings, Security Token Offering and other Blockchain-based offers of digital assets within Nigeria or by Nigerian issuers or sponsors or foreign issuers targeting Nigerian investors, shall be subject to the regulation of the Commission.
Cryptocurrencies and utility tokens will be treated as commodities while #securitytokens as securities, and derivatives and investment funds as specified investments.