Crowdfunding Platform: SEC asks investors to comply with registration requirements by June 30

The Securities and Exchange Commission (SEC) has directed all existing investment crowdfunding portals/digital commodities investment platforms to gace the knowledge of the  eligibility criteria for operating a Crowdfunding Portal
It also alerted all stakeholders to  comply with the registration requirements or cease operations by June 30.
The information to this effect was released by the commission on Wednesday in Abuja
The security market regulatory body said that  the rules governing crowdfunding business in Nigeria became effective on January 21, 2021,.
Acccording to SEC, the rule was part of efforts by the commission to ensure investor protection
“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 April 21, 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 June 30, 2021, failing which the operations of such platform would be categorised as illegal and attract regulatory sanction as stipulated in the Rules,” it said.