The Central Bank of Nigeria (CBN) has introduced stricter regulatory requirements for stablecoin issuers and other virtual asset service providers, setting minimum capital thresholds of ₦10 billion and ₦15 billion for two categories of stablecoin operators.
The new framework, contained in a circular dated November 5, 2026, establishes rules for the licensing, supervision and operation of non-security virtual assets in Nigeria.
Under the guidelines, issuers of naira-referenced stablecoins must maintain a minimum paid-up capital of ₦10 billion, while companies issuing stablecoins linked to foreign currencies, including the US dollar, are required to maintain at least ₦15 billion.
The CBN said the requirements must be maintained throughout the period of operation and warned that offshore issuers would not be exempt from Nigeria’s incorporation, licensing and capital rules.
CBN Moves to Strengthen Oversight of Digital Assets
The apex bank said the growing adoption of stablecoins and other virtual assets presents opportunities for innovation in payments, remittances, settlements and digital commerce.
However, it warned that the expansion of the sector also creates risks involving financial stability, monetary policy, consumer protection, foreign exchange management and illicit financial activities.
The new framework is designed to establish a risk-based regulatory system covering the issuance, distribution, conversion, custody, transfer, redemption and settlement of regulated virtual assets.
It also sets requirements for corporate governance, financial safeguards, operational resilience, consumer protection and reporting obligations.
P2P Crypto Traders Face Tighter Monitoring
The updated guidelines introduce stricter monitoring of peer-to-peer (P2P) transactions involving regulated digital tokens.
Virtual asset providers must establish criteria for identifying customers who regularly buy, sell or exchange regulated tokens as a business.
The assessment must consider factors such as transaction volume, frequency, the number of counterparties and whether the customer advertises exchange rates.
Providers are required to apply enhanced due diligence, impose appropriate transaction limits and report identified business operators to the CBN.
The bank clarified that identifying someone as a P2P trader does not automatically authorise that person to conduct activities requiring a regulatory licence.
Individuals whose activities require authorisation must obtain the appropriate approval, cease the regulated activity or operate as agents of licensed providers, subject to the applicable rules.
Offshore Stablecoin Issuers Must Comply With Nigerian Rules
The CBN has also made clear that foreign companies cannot rely solely on licences obtained in other jurisdictions to operate within Nigeria’s regulated virtual asset market.
Offshore issuers must comply with applicable Nigerian incorporation, licensing and capital requirements.
The framework applies to naira-backed stablecoins, foreign currency-backed stablecoins, Deposit Money Tokens and other designated tokens falling within the CBN’s regulatory responsibilities.
The bank said the rules are intended to protect consumers against fraud, issuer insolvency, poorly managed reserves and situations where customers are unable to redeem their digital tokens.
What the New Rules Mean for Nigeria’s Crypto Industry
The guidelines represent a significant regulatory development for businesses operating in Nigeria’s digital asset sector.
Stablecoin issuers will face substantial capital requirements, while exchanges, wallet providers, custodians and other virtual asset service providers will be subject to relevant licensing and compliance obligations.
For consumers, the framework aims to improve transparency, strengthen safeguards and reduce the risk of financial misconduct.
The CBN said its broader objective was to support responsible innovation while preserving monetary and financial stability.
As implementation progresses, businesses operating in the sector will need to assess their licensing status and ensure they meet the new requirements.
#CBN #Stablecoins #Cryptocurrency #CryptoRegulation #DigitalAssets #NigeriaBusiness #Fintech #FinancialTechnology #OnPointGist
