Nigeria considers allowing asset-backed tokens, but crypto still faces restrictions: Bloomberg

Nigeria’s Securities and Exchange Commission (SEC) is considering licensing digital exchanges dealing in tokens backed by assets such as equity, debt, and property, according to a report by Bloomberg.

However, the country’s regulators have no immediate plans to permit crypto trading. Head of securities and investment services at the SEC, Abdulkadir Abbas, said that the agency prefers to start with a clear proposal before moving on to more complex ones.

The SEC in Nigeria has already started processing applications for digital exchanges, but Nigeria’s central bank has been restricting crypto trading in the country.

The SEC plans to register fintech firms as digital sub-brokers, crowdfunding intermediaries, robo-advisors, fund managers, and tokenized coin issuers.

These firms will be under “regulatory incubation” for one year, during which they will be closely monitored by the SEC. However, there will be no regime for handing out licenses to crypto exchanges until standards are agreed with the central bank.