The Securities and Exchange Commission (SEC) has directed all existing investment crowdfunding portals/digital commodities investment platforms to register with the commission or cease operations by June 30.
A statement by the commission in Abuja on Thursday said the rules governing crowdfunding business in the country came into effect in January.
Crowd funding is to fund a project or venture by raising money from a large number of people who each contribute a relatively small amount, typically via the internet.
The commission said the rules were part of efforts by SEC to ensure investors’ 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 platform prior to the commencement of the rules were expected to restructure all operations in accordance with the requirements of the rules.
”They are also expected to apply for registration not later than 90 days from the effective date.
“While the transitional period elapsed on April 21, 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.
”They are to comply with the registration requirements or cease operations by June 30.
”Failure to do this, the operations of such platform will be categorised as illegal and attract regulatory sanction as stipulated in the rules.”