SEC proposes N1 million limit per issuer, N10 million annual cap for retail crypto investors

The Securities and Exchange Commission (SEC) in Nigeria has proposed a N1 million limit per issuer and a N10 million annual cap for retail crypto investors. These proposed limits are part of the SEC's broader framework for digital asset issuance, trading, custody, and related activities in Nigeria. The main aim is to strengthen investor protection in the country's digital asset market.

Under the proposed rules, Digital Asset Offering Platforms would need to implement additional measures when a retail investor intends to invest more than N1 million or 5% of their net worth, whichever is higher. These measures include investor categorisation, risk acknowledgement, net-worth declarations, and aggregation of investments.

While the proposal does not explicitly exempt certain categories of investors, it does acknowledge the need for such exemptions. Nigeria's digital asset market has been expanding rapidly, with an estimated 26.3 million Nigerians using digital assets regularly.

Brief written by urgent.news from Nairametrics's own syndicated text. Machine-written — may contain errors; check the original before relying on it.