JAKARTA - Nigeria, one of the countries particularly interested in cryptocurrencies such as Bitcoin, is preparing new regulations for digital asset platforms. Bloomberg reported on May 1 that Nigerian Securities and Exchange Commission (SEC) is considering allowing digital asset exchanges that have licenses to list tokens supported by certain assets.
Nigeria's SEC head of securities and investment, Abdulkadir Abbas, stated that the authority would only allow listing tokens based on assets such as equity, debt, or property. "Cryptocurrencies such as Bitcoin and Ether will not be included in the asset," Abbas was quoted as saying by Cointelegraph.
The Nigerian SEC aims to list fintech companies as digital sub-brokers, crowdfunding funding intermediaries, fund managers, and token coin issuers. The authorities will not register crypto exchanges until the central bank provides clear regulations for the crypto market.
Abbas noted that license applicants will experience a year of "regulational incubation", which allows the SEC to study their operations and provide their services in the country. He added.
"In the 10th month, we must be able to determine whether to register the company, extend the incubation period, or even ask companies to stop operations," Abbas said.
Previously, the Central Bank of Nigeria banned local banks from providing services to cryptocurrency-related platforms in early 2021. Regarding the ban, the regulator mentioned high risks associated with cryptocurrency trading such as Bitcoin.
The central bank also pledged to impose strict sanctions for any lender or financial institution that does not comply with the directives.
Despite being banned, Nigeria has emerged as one of the most active countries in terms of adoption and interest in Bitcoin and other cryptocurrencies.
According to data from Google Trends, Nigeria ranks second based on search interests for keyword "Bitcoin", behind El Salvador adopting Bitcoin as legal tender in 2021. Other jurisprudence in lists of the five most curious countries about cryptocurrencies are Slovenia, the Netherlands, and Switzerland.
According to the Chainalysis crypto adoption index, Nigeria is also included in the top 20 countries in terms of crypto adoption by 2022.
While banning cryptocurrencies, the Central Bank of Nigeria has actively promoted its central bank digital currency known as eNaira. After a slow start, eNaira reportedly experienced increased adoption as national fiat reserves experienced severe shortages.
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