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Nigeria’s SEC Plans to Allow Asset-Backed Tokens But Not Crypto

  • Firms to undergo a year ‘regulatory incubation,’ by the SEC
  • Regulator seeks to license tech firms for diversification

Nigeria’s Securities and Exchange Commission is processing applications for digital exchanges on a trial basis in a bid to widen market participation in Africa’s most populous country where the central bank restricts trading in cryptocurrencies.

The SEC is considering permitting tokenized coin offerings on licensed digital exchanges that are backed by assets including equity, debt, property but “not crypto,” Abdulkadir Abbas, head of securities and investment services at the Abuja-based commission said in an interview in Lagos. “We always like to start, as a regulator, with a very simple clear proposal before we go into the complex ones.”