Worldview Advisory
Nigeria

Nigeria's central bank sets crypto licensing rules and bans algorithmic stablecoins

New capital and reserve requirements for crypto firms and stablecoin issuers could reshape licensing and compliance costs for operators in one of Africa's largest crypto markets.

Photo: LEADERSHIP Newspapers

What happened

The Central Bank of Nigeria issued Regulations for the Operations of Non-Security Virtual Assets, establishing rules for stablecoin issuers, crypto payment providers, exchanges and custodians. TradingView+2 The regulations took effect immediately, and existing operators have 180 days to apply for licences or authorizations. TradingView Foreign-currency stablecoin issuers must maintain minimum paid-up capital of N15 billion, while naira stablecoin issuers must maintain N10 billion. Tangem+3 The central bank has banned algorithmic stablecoins and requires all stablecoins to be fully backed by reserves plus an additional buffer. TradingView+2

Around it

Industry experts have warned that the N15 billion capital requirement may shut out smaller indigenous fintech companies and emerging players, though they acknowledged the rules would strengthen accountability and public confidence. LEADERSHIP Newspapers The framework follows President Bola Tinubu's July executive order, which sought to coordinate crypto oversight among Nigerian authorities without changing their existing powers. TradingView The rules also introduce stricter approval processes and enhanced identity verification for peer-to-peer crypto trading, and foreign firms cannot circumvent them through offshore licences or intermediaries. Tangem+1

What comes next

Existing operators have 180 days to apply for licences or authorizations under the new regulations. TradingView

Sources

  1. TradingViewNigeria sets new crypto licensing rules, bans algorithmic stablecoins
  2. TangemNigeria imposes N15bn capital rule, bans algorithmic stablecoins
  3. LEADERSHIP NewspapersCBN’s N15bn Capital Rule May Shut Out Small Stablecoin Operators
  4. The Whistler NewspaperCBN Imposes N15bn Capital Requirement On Foreign Stablecoin Issuers
  5. Brand SpurCBN Sets N15bn Capital Requirement for Stablecoin Issuers, Tightens P2P Crypto Trading Rules
  6. nigerianeye.comCBN Tightens Cryptocurrency Regulations, Introduces N15bn Capital Requirement

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