Nigeria: Securities and Exchange Commission adopted Rules on Issuance, Offering Platforms and Custody of Digital Assets including registration requirements

On 11 May 2022, the Securities and Exchange Commission (SEC) adopted Rules on Issuance, Offering Platforms and Custody of Digital Assets, establishing registration requirements for digital asset entities, including Digital Asset Offering Platforms (DAOPs), Digital Asset Custodians (DACs), Virtual Asset Service Providers (VASPs), and Digital Asset Exchanges (DAX). Issuers of digital assets must undergo an initial assessment and register if their assets are deemed securities, submitting a white paper and complying with financial and security regulations. DAOPs must register by meeting minimum capital requirements, ensuring governance and risk management compliance, and conducting due diligence on issuers. DACs are required to safeguard digital assets, prevent unauthorized access, and comply with anti-money laundering (AML) regulations. VASPs must register if they provide exchange, transfer, safekeeping, or investment services, demonstrating financial and operational security. DAX operators face stringent standards, including high capital requirements, board governance, and strict compliance measures to ensure market integrity. All registered entities must maintain transparency, protect investors, and prevent fraud.