SNOW TV NEWS DESK
The Central Bank of Nigeria (CBN) has introduced a stricter regulatory framework for stablecoins and other virtual asset operations in the country, setting minimum capital requirements of N10 billion and N15 billion for licensed issuers under two different categories.
The new guidelines, contained in a circular dated November 5, 2026, and signed by the Director of Payments Systems Policy, Musa Jimoh, are aimed at strengthening oversight of the growing digital asset market while protecting consumers and maintaining financial system stability.
Under the framework, Class 1 licensed issuers, which are responsible for issuing naira-referenced stablecoins, must maintain a minimum paid-up capital of N10 billion.
Class 2 issuers, whose stablecoins are designed to maintain their value against foreign currencies such as the US dollar, face a higher capital requirement of N15 billion.
The CBN stressed that these capital requirements must be maintained continuously, adding that foreign-based issuers will not be exempted from incorporation, licensing, or capital requirements simply because they operate from outside Nigeria.
Explaining the reason behind the new framework, the apex bank acknowledged that virtual assets, stablecoins, and tokenized payment instruments offer significant opportunities for innovation in payments, international remittances, settlements, and digital commerce.
However, it warned that their increasing adoption also creates potential risks involving financial stability, monetary policy, consumer protection, money laundering, operational security, and foreign exchange management.
The guidelines therefore establish a risk-based regulatory structure for non-security virtual assets, including stablecoins, Deposit Money Tokens (DMTs), and Virtual Asset Service Providers (VASPs) operating within or conducting business involving Nigeria.
Beyond capital requirements, the new rules introduce stricter obligations relating to corporate governance, consumer protection, financial reporting, operational resilience, and anti-money laundering compliance.
Tighter monitoring of peer-to-peer transactions
A major aspect of the framework is the CBN’s increased attention to peer-to-peer (P2P) cryptocurrency transactions, particularly activities that could facilitate money laundering or terrorist financing.
Under the guidelines, virtual asset providers must establish board-approved criteria for identifying customers who regularly buy, sell, or exchange regulated tokens as a business.
Such assessments will consider transaction volumes, frequency, the number of counterparties involved, and whether customers advertise their exchange rates.
Providers are also required to apply enhanced customer checks, impose appropriate transaction limits, and report identified customers to the CBN.
The bank clarified that being identified as a frequent P2P trader does not automatically authorize someone to operate a regulated virtual asset business. Individuals engaging in activities requiring official approval must obtain the appropriate license, stop the activity, or operate as authorized agents.
The broader objective is to ensure that the growing stablecoin market does not undermine monetary policy, weaken foreign exchange management, or expose Nigerians to fraud, poorly backed digital tokens, and difficulties withdrawing their funds.
The new framework covers naira-backed stablecoins, foreign currency-backed stablecoins, Deposit Money Tokens, and other digital tokens designated by the CBN.
With the new capital thresholds and compliance obligations, the regulator is signalling that companies seeking to operate in Nigeria’s stablecoin market will face more demanding financial and operational standards.
“Sir Bartholomew White Ebe is a Lagos-based media personality, Music Artist, Producer, and a Relationship Coach and independent journalist. With over seven years of experience tracking political developments and cultural shifts in Nigeria, he specializes in local current affairs, grassroots politics, and community-driven reporting across Lagos State. As the founder and chief editor of Snow Multimedia Connect {SNOW TV}, he leads the editorial team to deliver verified, high-impact stories to digital audiences.”
Email: snowmediaconnect@gmail.com
