Tokenized art: risks and the rules

Tokens that give a share in the value of a work of art are generally treated as investments, and investments are regulated.

The rules in Nigeria

The Investments and Securities Act 2025 brings virtual and digital assets within the definition of securities, regulated by the Securities and Exchange Commission (SEC). In practice, an offering of art tokens to the public should be made through a platform the SEC has registered, and the offering itself may need approval. Other countries, including Ghana, have their own regulators and rules. Check before you invest.

Questions to ask

• Is the platform licensed, and by whom? Is the offering approved?
• Who legally owns the work, and where is it kept? Is it insured?
• Is the work authenticated, with provenance you can see? Who appraised it, and when?
• What fees are taken, at the start and every year?
• How can I sell my tokens, and to whom? Is there a market for them?
• When and how can the work be sold, and who decides?

The main risks

Little or no market for the tokens; a value resting on a single appraisal; costs that eat into returns; doubts about authenticity; failure of the platform or the custodian.

Learn before you invest

OxiArt runs classes and talks on tokenization with authorised advisers. See What's on, and ask an adviser your questions on their page.

This guide is general information, not financial, legal or investment advice. Speak to an authorised adviser about your own situation.