Tokens but not crypto: Nigeria SEC prepares new digital asset rules
Nigeria, one of the world’s most curious nations about cryptocurrencies like Bitcoin (BTC), is preparing new industry regulations for digital asset platforms.
The Securities and Exchange Commission (SEC) of Nigeria is considering allowing licensed digital exchanges to list tokens backed by certain assets, Bloomberg reported on May 1.
According to SEC head of securities and investment Abdulkadir Abbas, the authority plans to only authorize listings of tokens based on assets like equity, debt or property. Cryptocurrencies like Bitcoin (BTC) or Ether (ETH) will not be among those assets, Abbas reportedly said.
Nigeria’s SEC aims to register fintech firms as digital sub-brokers, crowdfunding intermediaries, fund managers and tokenized coins issuers. The authority will not register crypto exchanges until the central bank provides clear regulations for the crypto market.
Abbas noted that license applicants will undergo a year of “regulatory incubation” allowing the SEC to study their operations and renter their services in the country. He added:
As previously reported, the Central Bank of Nigeria banned local banks from providing services to cryptocurrency-related platforms in early 2021. For the ban, the regulator cited high risks associated with trading cryptocurrencies like Bitcoin. The central bank also promised to implement strict penalties to any lender or financial institution that fails to comply with the directive.
Related: MetaMask enables direct crypto purchases in Nigeria
Despite the ban, Nigeria has emerged as one of the most active countries in terms of adoption and curiosity about Bitcoin and other cryptocurrencies.
According to data from Google Trends, Nigeria ranks No. 2 by search interest for the keyword
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