Register now or stop operations, SEC tells crowdfunding platforms

The Securities and Exchange Commission, on Thursday, directed all existing investment crowdfunding portals/digital commodities investment platforms to comply with the registration requirements or cease operations by June 30, 2021.

The apex regulator of the Nigerian capital market said the platforms should note the requirements and eligibility criteria for raising funds through and/or operating a crowdfunding portal.

According to SEC, the rules governing crowdfunding business in Nigeria came into effect on January 21, 2021, which was part of efforts by the commission to ensure investor protection while encouraging innovation in the conduct of securities business.

“In line with the transitional provisions of the rules, all persons/entities operating an investment crowdfunding portal/digital commodities investment platform prior to the commencement of the rules were expected to restructure all operations in accordance with the requirements of the rules and apply for registration not later than 90 days from the effective date,” it said.

SEC said the transitional period elapsed on April 21, 2021, adding that platforms that failed to meet the June 30 deadline would be categorised as illegal and attract regulatory sanction as stipulated in the rules.