Nigerian SEC Plans To Support The Issuance Of Tokens But “Excluding Crypto”: Bloomberg

Key Points:

• Nigeria’s SEC to process trial applications for digital exchanges to attract digitally-savvy investors to local assets.
• Nigeria has the highest volume of peer-to-peer cryptocurrency transactions outside of the US.
• SEC to study digital exchanges’ operations during year-long regulatory incubation period before deciding whether to register or not.

The Nigerian SEC plans to support the issuance of tokens, including assets such as equity, debt, and real estate, but “excluding cryptocurrencies,” and the company will undergo a one-year “regulatory incubation” by the SEC. SEC will not register cryptocurrency exchanges until a standard agreement is reached with the central bank.

Nigeria’s Securities and Exchange Commission (SEC) plans to broaden market participation by processing trial applications for digital exchanges. While the Central Bank of Nigeria restricts cryptocurrency trading, the SEC is considering allowing tokenized coin offerings on licensed digital exchanges backed by assets such as equity, debt, and property. This move is expected to attract digitally-savvy individuals in the nation of over 200 million, including 43% of the population below the age of 14, to local assets like equities that have been shunned for years.

Paxful reports that Nigeria has the highest volume of peer-to-peer cryptocurrency transactions outside the US. Other countries are also experimenting with similar tokens. For example, DBS Bank Ltd., JPMorgan Chase & Co., and Marketnode Pte are leading “Project Guardian” in Singapore, which aims to explore the potential uses of asset tokenization. It involves creating a permissioned liquidity pool with tokenized bonds and deposits.

The Nigerian Securities and Exchange Commission (SEC) plans to register fintech firms as digital sub-brokers, crowdfunding intermediaries, robo-advisors, fund managers, and tokenized coin issuers. Digital exchanges, however, will not be registered until standards are agreed upon with the central bank, which has banned cryptocurrency transactions.

Digital exchanges in the country will undergo a year of regulatory incubation, during which they will offer only skeletal services that will be monitored by the SEC. The SEC will study their operations and determine by the tenth month whether to register the firm, extend the incubation period, or ask the firm to stop operations.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Thana

Coincu News