Nigeria Trials Token Exchanges, Excludes Crypto
ABUJA, NG – Nigeria’s Security and Exchange Commission (SEC) is considering permitting token exchanges backed by equity to broaden market participation. However, the regulator has explicitly stated that tokenized offerings would not include cryptocurrencies.
The financial authority is processing applications for digital exchanges to operate in the country on a trial basis, intending to undergo a year of “regulatory incubation,” during which they will offer limited exchange services under SEC supervision.
The regulator is considering permitting token trading on licensed digital exchanges backed by equity, property, or debt, but crypto trading is still forbidden in Africa’s most populace nation.
Nigeria conducts the largest number of cryptocurrency transactions outside the U.S., and the country’s SEC aims to register fintech firms as sub-brokers, fund managers, and more. However, industry growth remains hampered while the central bank stands firmly against crypto trading.
