One of the countries with the greatest amount of interest in cryptocurrencies such as Bitcoin BTC, is Nigeria. Reports reveal that new industry laws for digital asset platforms are now under development
According to a report from Bloomberg, the Nigerian Securities and Exchange Commission (SEC) is mulling over whether or not to permit licensed digital exchanges to list tokens that are backed by specific assets.
According to Abdulkadir Abbas, who is the head of securities and investment at the Nigerian Securities and Exchange Commission (SEC), the regulatory body intends to only permit the listing of tokens that are based on assets such as equity, debt, or property.
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Remarks From the Head of Nigeria’s SEC
According to what Abbas was quoted as saying, Crypto will not be included in those assets.
The Securities and Exchange Commission of Nigeria intends to register financial technology companies as digital sub-brokers, crowdfunding intermediaries, fund managers, and issuers of tokenized coins. Until the central bank publishes comprehensive guidelines for the cryptocurrency industry, the authority will hold off on registering cryptocurrency exchanges.
Abbas mentioned that licence candidates would have to go through a year of “regulatory incubation,” which would give the SEC the opportunity to investigate the applicants’ operations and the services they provide in the country. He also said that
By the tenth month, they should have enough information to decide whether to register the company, extend the incubation period, or even ask the company to cease operations,
As was previously reported, the Central Bank of Nigeria issued a directive in early 2021 prohibiting local banks from providing any services to platforms associated to cryptocurrencies. The authority that made the decision to prohibit trading cryptocurrencies like Bitcoin underlined the considerable dangers connected with doing so. Any lender or financial institution that does not comply with the instruction will be subject to severe fines, according to the central bank’s statement, which also included this promise
In spite of the prohibition, Nigeria has become one of the most active countries in terms of the adoption of Bitcoin and other cryptocurrencies as well as the level of curiosity regarding them.
Information Obtained From Google Trends
According to information obtained from Google Trends, Nigeria ranks second when it comes to the amount of interest shown in searching for the keyword “Bitcoin,” trailing only El Salvador, which will officially recognise Bitcoin as currency in 2021. Slovenia, the Netherlands, and Switzerland are also included on the list of the top five countries with the most interest in cryptocurrencies.
According to the crypto adoption index developed by Chainalysis in 2022, Nigeria was ranked as one of the top 20 countries worldwide when it came to the use of cryptocurrencies.
The Central Bank of Nigeria has been actively marketing its own central bank digital currency, which is known as the eNaira, despite the fact that cryptocurrencies are illegal in the country. According to reports, the eNaira has seen increased popularity despite having a slow beginning. This is apparently because national fiat reserves are facing acute shortages.