A digital asset is a token that represents assets such as a debt or a claim to shares in the issuer and therefore falls under the jurisdiction of the Nigerian Securities and Exchange Commission by default, the agency said in a new set of rules released over the weekend.
- The Nigerian SEC's circular, titled "New Rules on Issuance, Offering Platforms and Custody of Digital Assets," is intended to provide regulatory clarity in the booming market, which has been growing dramatically year after year in the tech-savvy country.
- Exchanges registered in the country must have a paid-up capital of at least NGN500,000 ($1,204) and post a deposit of at least 25% of that amount, the regulations state.
- The SEC also requires that exchanges make their fees "fair, reasonable and transparent."
- Registered exchanges must also provide the SEC with a list of assets they intend to trade and obtain a clearance certificate for each asset.
- In September, the Nigerian SEC said it had established a special division to investigate crypto investments.