CBN unveils regulatory framework for non-security digital belongings in Nigeria

The Central Bank of Nigeria (CBN) has launched a regulatory framework for the operations of non-security digital belongings within the nation, establishing necessities for the licensing, supervision, and oversight of stablecoins, deposit cash tokens, and associated digital asset service suppliers.

The pointers are designed to assist innovation in digital funds, remittances, settlement and commerce whereas addressing dangers related to monetary stability, financial coverage, shopper safety, illicit monetary actions, operational resilience and overseas change administration.

The CBN round launched on Friday by the Director, Payment System Policy Department,, Musa Jimoh, indicated that the rules had taken impact on November 5, 2026.

According to the apex financial institution, the framework adopts a risk-based strategy to regulating non-security digital belongings and seeks to safeguard the integrity, stability and effectivity of Nigeria’s monetary system.

“It additionally establishes necessities protecting company governance, prudential requirements, shopper safety, operational resilience, anti-money laundering, counter-terrorist financing and counter-proliferation financing, in addition to reporting obligations for operators.

“The guidelines cover the issuance, offering and distribution of regulated tokens, market access, intermediation, exchange and conversion services, fiat currency on-ramp and off-ramp services, custody, digital wallets, transfers, payment gateways, merchant acceptance, remittances, clearing and settlement,” the Circular learn.

According to the Circular, “The guidelines also extend to operators of payment and settlement infrastructure, reserve asset custodians, agents and other intermediaries involved in regulated virtual asset activities.”

The CBN recognized 4 main classes of regulated tokens: Naira-referenced stablecoins, overseas currency-referenced stablecoins, Deposit Money Tokens (DMTs) and different designated tokens that fall inside its regulatory mandate.

“Under the proposed classification, Class 1 stablecoins are Naira-referenced digital belongings designed to keep up a one-to-one worth with the native forex and backed by eligible Naira-denominated reserve belongings.

“Class 2 stablecoins, on the other hand, are designed to maintain a stable value against foreign currencies,” the Circular indicated additional.

Deposit Money Tokens are digital tokens issued by Deposit Money Banks, representing direct claims on the issuing banks and equivalent to present Naira-denominated deposit liabilities.

“The guidelines provide that the CBN will determine the regulatory status of a token or virtual asset arrangement based on its economic substance, functionality and risk characteristics rather than its name, legal form, marketing description or underlying technology.”