The federal government has directed all existing investment crowdfunding platforms/digital commodities investment firms to meet its June 30 registration deadline or cease operations.

It gave the order through the Securities and Exchange Commission (SEC).

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

The commission said the rules were part of SEC’s efforts 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,” it noted.

It said further that while the transitional period elapsed on April 21, the commission directed existing investment crowdfunding portals/digital commodities investment platforms to note the requirements and eligibility criteria for raising funds through and operating a crowdfunding portal.

“They are to comply with the registration requirements or cease operations by June 30,” said SEC. “Failure to do this, the operations of such platform will be categorised as illegal and attract regulatory sanction as stipulated in the rules.”