Registration: SEC Gives Crowdfunding Promoters June 30 Deadline

The Securities and Exchange Commission has set June 30, 2021 as
deadline for all existing investment crowdfunding portals/digital
commodities investment platforms to comply with registration
requirements or cease operations.

The Commission in a notice released on Wednesday directed
promoters note the requirements and eligibility criteria for
raising funds through and/or operating a Crowdfunding Portal and
comply with the registration requirements.

According to the SEC, the rules governing Crowdfunding business
in Nigeria came into effect on the 21st day of January, 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.

“While the transitional period elapsed on the 21stday of April,
2021, the Commission hereby directs all existing investment
crowdfunding portals/digital commodities investment platforms to
note the requirements and eligibility criteria for raising funds
through and/or operating a crowdfunding Portal and comply with the
registration requirements or cease operations by the 30th of June,
2021, failing which the operations of such platform would be
categorized as illegal and attract regulatory sanction as
stipulated in the Rules”.

The Securities and Exchange Commission has set June 30, 2021 as
deadline for all existing investment crowdfunding portals/digital
commodities investment platforms to comply with registration
requirements or cease operations.

The Commission in a notice released on Wednesday directed
promoters note the requirements and eligibility criteria for
raising funds through and/or operating a Crowdfunding Portal and
comply with the registration requirements.

According to the SEC, the rules governing Crowdfunding business
in Nigeria came into effect on the 21st day of January, 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.

“While the transitional period elapsed on the 21stday of April,
2021, the Commission hereby directs all existing investment
crowdfunding portals/digital commodities investment platforms to
note the requirements and eligibility criteria for raising funds
through and/or operating a crowdfunding Portal and comply with the
registration requirements or cease operations by the 30th of June,
2021, failing which the operations of such platform would be
categorized as illegal and attract regulatory sanction as
stipulated in the Rules”.