CBN Tightens Cryptocurrency Regulations, Introduces N15bn Capital Requirement

 The Central Bank of Nigeria, CBN, has launched a minimal
capital requirement of N15 billion for firms searching for to situation overseas
currency-backed stablecoins, together with digital currencies reminiscent of USDT and
USDC, as a part of efforts to manage Nigeria’s rising digital asset market.

 

The apex financial institution disclosed this in its new 169-page Regulations
for the Operations of Non-Security Virtual Assets in Nigeria, issued on
Thursday, November 5, 2026, and signed by Musa Jimoh, Director of its Payments
System Policy Department.

Under the brand new regulation, firms aspiring to situation
stablecoins backed by foreign exchange, significantly the US greenback, will need to have
a minimal paid-up capital of N15 billion earlier than commencing operations in
Nigeria.

The regulation seeks to determine a complete,
risk-based regulatory framework for digital asset operators, strengthen
monetary system integrity, defend clients and promote accountable
innovation in Nigeria’s rising digital fee ecosystem.

According to the CBN, the framework covers the licensing and
authorisation of stablecoin issuers, digital asset service suppliers, deposit
cash token operators, digital asset fee providers, platform-facilitated
peer-to-peer transactions, custody, transfers, remittances, clearing and
settlement actions.

The apex financial institution acknowledged that the regulation would additionally
set up necessities for capital adequacy, reserve backing, liquidity and
redemption, company governance, danger administration, cybersecurity and
operational resilience.

Why the brand new CBN regulation issues to the cryptocurrency
ecosystem

A significant goal of the regulation is to make sure that
firms issuing stablecoins have adequate monetary capability and enough
reserves to fulfill their obligations to clients.

By introducing capital, reserve-backing and redemption
necessities, the CBN seeks to strengthen confidence in stablecoins and scale back
the dangers related to poorly managed digital asset operations.

The regulation additionally supplies for the safeguarding of reserve
belongings and buyer funds, alongside improved disclosures, buyer safety
and complaints administration.

On monetary safety, the CBN is requiring regulated
operators to adjust to anti-money laundering, counter-terrorist financing and
counter-proliferation financing obligations.

The necessities additionally embody sanctions screening,
transaction monitoring, blockchain analytics and compliance with the Travel
Rule, which requires related details about digital asset transfers to
accompany transactions between service suppliers.

Other provisions cowl regulatory reporting, supervisory
entry, info sharing, administrative sanctions and orderly wind-down
preparations for operators unable to proceed their companies.

The CBN defined that the regulation applies to individuals
finishing up regulated actions in or from Nigeria, directing such actions
at Nigerians or enterprise operations able to materially affecting the
nation’s fee system, monetary system, overseas trade market or broader
financial system.

CBN clarifies relationship with SEC

The apex financial institution additional clarified that the brand new regulation does
not override the statutory obligations of the Securities and Exchange
Commission, SEC.

It acknowledged that digital belongings categorised as securities,
funding contracts or different capital-market merchandise would stay topic to
the relevant capital-market regulatory framework.

“Where an exercise includes each Non-Security Virtual
Assets and issues falling inside one other authority’s mandate, the related
approvals shall be obtained from every competent authority,” the CBN
acknowledged.

The financial institution directed all affected monetary establishments,
issuers, service suppliers, operators, promoters and different stakeholders to
familiarise themselves with the brand new necessities and guarantee full compliance.

It particularly urged operators to adjust to relevant
licensing, authorisation, prudential, operational, reporting, anti-money
laundering, customer-protection and know-how necessities.

Recall that President Bola Ahmed Tinubu in July 2026 signed
an govt order on digital belongings in Nigeria.

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