The SEC should issue guidelines and standards for White Papers and initial coin offerings (ICOs):

• Advertising and issuance procedures should be defined without ambiguity.
• The SEC should create appropriate licensing regimes for new entrants into the crowdfunding ecosystem.
• The SEC should develop a detailed framework for VFA based economy.

On anti-money laundering and 'know your customer' (KYC) procedures, the SEC should develop a stringent framework for KYC and due diligence which will apply regardless of the legal status of an ICO or token.

The SEC should also have clear taxonomies of tokens based on their nature, characteristics and economic realities as their determining factors.

The CBN warned the public that cryptocurrencies, such as bitcoin, monero or litecoin, and exchanges, such as Nigerian bitcoin exchange NairaE, are “not licensed or regulated” by it.

The release states that dealers and investors in cryptocurrencies in Nigeria are not afforded the protection of the law.

“Virtual currencies are traded in exchange platforms that are unregulated, all over the world. Consumers may therefore lose their money without any legal redress in the event these exchangers collapse or close business,” the release says.