SEC sets June 30 for crowdfunding registration

The Securities and Exchange Commission (SEC) led all existing crowdfunding digital commodity investment portals/platforms to register with the commission or cease operations before June 30.

A statement from the commission in Abuja said on Thursday the rules governing crowdfunding activity in the country came into effect in January.

Crowdfunding involves financing a project or business by raising funds from a large number of people who each contribute a relatively small amount, usually via the Internet.

The commission said the rules were part of the SEC’s efforts to provide investor protection while encouraging innovation in the conduct of securities business.

According to the transitional provisions of the rules, all persons/entities operating an investment crowdfunding platform before the start of the rules were expected to restructure all operations in accordance with the requirements of the rules.

“They should also apply for registration do not more than 90 days from the effective date.

“As the transition period has passed on April 21, the commission hereby directs all existing crowdfunding portals/digital commodities investment platforms to note the requirements and criteria for eligibility to raise funds through and/or operate a crowdfunding portal.

“They have to comply with registration requirements or cease operations before June 30.

“If you fail to do so, the operations of this platform will be classified as illegal and will be subject to regulatory penalties, as stipulated in the rules.”