The Nigerian Securities and Exchange Commission (SEC) approved new measures to regulate cryptocurrencies and gave them the status of securities.
A digital token is a valuable asset, such as a debenture or the right to own a stake in the capital of the company that issued the coins, the SEC virtual currency.
The agency has imposed several restrictions on initial coin offerings:
- Cryptocurrency creators are allowed to sell no more than $25 million in digital assets per year;
- Managers of startups must own at least 50 percent of their firms’ stock;
- Individuals can buy up to $482 worth of digital assets during an ICO;
- Individuals are allowed to purchase tokens and coins worth no more than $4,820 per year.
Cryptocurrency exchanges are required to register with the SEC and open an office in Nigeria. Trading platforms will have to pay a fee of $72,250 to obtain permission to operate. To start providing services for buying and selling digital assets, the capital of exchanges must be at least $ 1.2 million.
Lawyer Emmanuel Ogbuka, who specializes in the regulation of the financial-technology industry, believes that the tightening of legislation on cryptocurrencies will lead to a monopoly in the Nigerian market and limit the possibilities of promising blockchain start-ups. In his opinion, the discriminatory policy of the SEC will spur the development of the shadow sector of the crypto industry.