Nigeria, one of the most curious countries in the world about cryptocurrencies like Bitcoin, is preparing new industry regulations for digital asset platforms.
The Nigerian Securities and Exchange Commission (SEC) is considering allowing licensed digital exchanges to list tokens backed by certain assets, Bloomberg reported on May 1.
According to Abdulkadir Abbas, director of securities and investments at the Nigeria Securities and Exchange Commission, the agency plans to only authorize the listing of tokens based on assets such as equity, debt or property. Bitcoin and other cryptocurrencies and ether. Abbas reportedly said those assets would not be among them.
Nigeria's SEC aims to register fintech firms as digital sub-brokers, crowdfunding intermediaries, fund managers and issuers of tokenized coins. Authorities will not register crypto exchanges until the central bank makes clear regulations on the crypto market. Abb as noted that license applicants will undergo a year of "regulatory incubation," allowing the SEC to study their businesses and offer their services in the country. He added:
"By month 10, we should be able to decide whether to register the company, extend the incubation period or even ask the company to cease operations." As previously reported, the Central Bank of Nigeria banned local banks from providing services to cryptocurrency-related platforms in early 2021. In the ban, the regulator pointed to the high risks associated with trading cryptocurrencies such as bitcoin. The central bank has also promised to impose severe penalties on any lender or financial institution that fails to comply with the dir ective.
Despite the ban, nigeria has emerged as one of the most action countreies in terms of bitcoin and other cryptocurrencils adjith. Ogle Trends, Nigeria Ranks Second in Terms of Search Interest for The Keyword "Bitcoin," Behind El Salvador, Which will adopt bitcoin as legal tender in 2021. Other jurisdictions on the list of the top five crypto-curious countries include Slovenia, the Netherlands and Switzerland. Nigeria also ranks among the top 20 countries in terms of cryptocurrency adoption by 20 22, according to Chainalysis' Cryptocurrency Adoption Index.
While banning cryptocurrencies, the Central Bank of Nigeria has been aggressively promoting its central bank digital currency called eNaira. After a slow start, eNaira has reportedly seen increased adoption as the nation's fiat currency reserves face severe shortage s.
