- The regulatory body is thinking about allowing digital asset exchanges to operate on a trial basis.
Nigeria’s Securities and Exchange Commission is thinking about allowing the offering of tokenized coins that are backed by equity, debt or property, but not cryptocurrency. These offerings would be available on licensed digital asset exchanges, and the regulator is currently reviewing applications for such exchanges on a trial basis.
Abdulkadir Abbas, the head of securities and investment services at Nigeria’s Securities and Exchange Commission based in Abuja, said that as a regulator, they prefer to begin with a simple and clear plan before moving on to more complex ones.
The Nigerian Securities and Exchange Commission is accepting applications for digital exchanges on a trial basis. The exchanges will undergo “regulatory incubation” for one year, during which they will offer limited services and be monitored by the SEC to evaluate their suitability for providing services.
Abdulkadir Abbas, the head of securities and investment services at Nigeria’s Securities and Exchange Commission, said that the regulator will monitor digital exchanges during a one-year “regulatory incubation” period. During this time, the exchanges will offer limited services, and the SEC will assess their ability to provide those services. By the tenth month, the regulator will decide whether to register the exchange, extend the incubation period, or ask the exchange to stop operating.
The SEC cannot register digital asset exchanges until they agree with the central bank of Nigeria. The bank has stopped financial institutions from working with crypto service providers. Before this, Nigeria was one of the quickest countries to adopt crypto in the region.
Although the central bank has been against it, some people are trying to include crypto in regulations. There is a new bill being developed which could acknowledge crypto as an investment capital.
