SEC DG Agama

The Securities and Exchange Commission (SEC) said it has proposed limits on how much retail investors can put into digital asset offerings, including a N1 million cap per issuer and a N10 million aggregate limit within any 12-month period. In a statement setting out its Proposed Rules on Digital and Virtual Asset Operations, Custody and Markets, the SEC said the limits form part of a broader framework for digital asset issuance, trading, custody and related activities in Nigeria. The regulator said the measures are aimed at strengthening investor protection in the country’s growing digital asset market. “A retail investor shall not invest more than N1,000,000 per issuer and N10,000,000 in aggregate across digital asset offerings within any twelve-month period,” the SEC proposed, the document quoted. The SEC said where a retail investor proposes to invest more than N1 million or more than 5 percent of their net worth, whichever is higher, Digital Asset Offering Platforms must take extra steps before accepting the investment. The regulator said those steps include providing a prominent risk warning, obtaining the investor’s express consent, and confirming that the investor understands the nature and material risks of the investment.

 

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