The Securities and Exchange Commission of Nigeria has officially defined digital assets under its regulatory umbrella.
In a Sept. 14 statement, the Nigerian Securities and Exchange Commission, or SEC, defined tokens and coins in the country’s financial markets. The commission stated that these digital assets, which provide “alternative investment opportunities”, would be classified into four different categories for regulatory oversight.
“Virtual crypto assets are securities, unless proven otherwise,” said the SEC. “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.”
According to the announcement, Nigerian regulators will register and approve all digital assets, treating cryptocurrencies and utility tokens as commodities. The SEC stated it would not be responsible for overseeing utility token spot trading and transactions. The regulatory body said it would view security tokens as securities, and derivatives and investment funds as