Nigeria’s SEC is considering allowing tokenized coin offerings backed by equity, debt, or property but “not crypto” on licensed digital asset exchanges.
On regulated platforms, the Nigerian securities regulator is considering allowing digital asset offers backed by tangible assets but not cryptocurrencies.
Bloomberg reports that Nigeria’s Securities and Exchange Commission (SEC) is considering allowing tokenized coin offers backed by equities, debt, or property on registered digital asset exchanges, but “not crypto.”
Tokenized equity is the establishment of equity ownership units represented by digital tokens or “coins” that may be created, issued, and exchanged on a blockchain in a quick and cost-effective manner.
The head of securities and financial services at the Abuja-based commission, Abdulkadir Abbas, was reportedly quoted as saying,
“As regulators, we like to begin with a plain, transparent proposal before moving on to the complex ones.”
The SEC tests digital exchanges with limited services and oversight for a year to assess their suitability.
“By the tenth month, we should be able to decide whether to register the company, prolong the time of incubation, or even urge the company to cease operations,” Abbas told Bloomberg.
According to the source, the SEC will begin licensing digital asset exchanges after it reaches an agreement with the central bank, which has prohibited local financial institutions from dealing with crypto services providers.
Nigeria was one of the fastest crypto adopters in the area before the central bank tightened its restrictions.
Despite the central bank’s opposition, lawmakers have tried to put crypto in the purview of rules with a new bill that might recognize crypto as investment capital.
