Cryptocurrencies Receive the Status of Securities in Nigeria

The Nigerian Securities and Exchange Commission (SEC) has approved new measures to regulate cryptocurrencies and has given them the status of securities.

According to the definition of the SEC on virtual currencies:

“A digital token is a valuable asset such as a debenture or the right to own a share in the capital of the company that issued the coins.”

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% of their firms’ shares, individuals can buy up to $482 worth of digital assets during an ICO and 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.