Bloomberg reported that the Securities and Exchange Commission of Nigeria is considering allowing tokenized coins backed by equity or debt, but not crypto, on licensed digital asset markets.

Abdulkadir Abbas is the head of Securities and Investment Services at the Abuja based commission.

The regulator also processes applications for digital exchanges as a test, with the intention of undergoing a year-long “regulatory incubator” where limited services are offered.

Abbas, speaking to Bloomberg, said that “by the 10th month we should be able decide whether to register the company, extend the period of incubation or ask the firm stop operating.”

The report states that the SEC won’t register digital asset exchanges until they reach an agreement with the central bank of the country, which has prohibited local financial institutions to interact with crypto service providers. Nigeria was among the fastest adopters of crypto before the central bank tightened its restrictions.

A new bill is being drafted that may recognize crypto as investment capital.

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