Nigeria SEC prepares new digital asset rules


Nigeria, one of many world’s most curious nations about cryptocurrencies like Bitcoin (BTC), is getting ready new trade laws for digital asset platforms.

The Nigerian Securities and Change Fee (SEC) is contemplating permitting licensed digital exchanges to record tokens backed by sure belongings, Bloomberg reported on Could 1.

In keeping with the Nigerian SEC’s head of securities and funding Abdulkadir Abbas, the authority plans to solely authorize listings of tokens primarily based on belongings like fairness, debt or property. Cryptocurrencies like Bitcoin (BTC) and Ether (ETH) is not going to be amongst these belongings, Abbas reportedly mentioned.

Nigeria’s SEC goals to register fintech corporations as digital sub-brokers, crowdfunding intermediaries, fund managers and tokenized cash issuers. The authority is not going to register crypto exchanges till the central financial institution supplies clear laws for the crypto market.

Abbas famous that license candidates would endure a yr of “regulatory incubation,” permitting the SEC to check their operations and render their providers within the nation. He added:

“By the tenth month, we must always be capable of make a willpower whether or not to register the agency, prolong the incubation interval and even ask the agency to cease operation.”

As beforehand reported, the Central Financial institution of Nigeria banned local banks from providing services to cryptocurrency-related platforms in early 2021. On the ban, the regulator cited excessive dangers related to buying and selling cryptocurrencies like Bitcoin. The central financial institution additionally promised to impose strict penalties for any lender or monetary establishment failing to adjust to the directive.

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Regardless of the ban, Nigeria has emerged as some of the energetic nations by way of adoption and curiosity about Bitcoin and different cryptocurrencies.

According to information from Google Tendencies, Nigeria ranks second by search curiosity for the key phrase “Bitcoin,” behind El Salvador, which adopted Bitcoin as legal tender in 2021. Different jurisdictions within the top-five crypto-curious nations record embrace Slovenia, Netherlands and Switzerland.

Curiosity in crypto by nation. Supply: Google Tendencies

In keeping with Chainalysis’ crypto adoption index, Nigeria was also among the top 20 countries by way of crypto adoption in 2022.

Whereas prohibiting cryptocurrencies, the Central Financial institution of Nigeria has been actively selling its central financial institution digital foreign money often called the eNaira. Following a sluggish start, the eNaira reportedly saw increased adoption because of nationwide fiat reserves going through extreme shortages.

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