Nigeria's SEC intends to allow asset-backed tokens while cryptocurrencies remain banned, Bloomberg has reported citing the Head of Department of Securities and Investment Services of the SEC, Abdulkadir Abbas.
The SEC is exploring the possibility of including tokens on licensed platforms. Such instruments must be backed by assets such as stocks, bonds or real estate.
The regulator has noted the initiative may increase local interest in new product categories.
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With a population of 200 million and a 43% share of citizens under the age of 14, this West African country, according to Paxful, represents the largest volume of transactions outside the United States.
The SEC intends to register financial technology companies such as digital sub-brokers, crowdfunding intermediaries, robo-advisors, fund managers and issuers of tokenized currencies.
The agency does not intend to issue licenses for crypto platforms before reaching an agreement on standards with the local central bank.