SNOW TV NEWS DESK
The Central Bank of Nigeria (CBN) has introduced stricter regulatory requirements for stablecoin issuers and other virtual asset service providers operating in the country, including minimum capital requirements of up to ₦15 billion.
The new measures are part of the apex bank’s efforts to strengthen oversight of Nigeria’s growing digital asset market, protect consumers, and prevent cryptocurrency platforms from being used for money laundering and other financial crimes.
According to a circular dated November 5, 2026, and signed by Musa Jimoh, Director of Payments Systems Policy, the CBN has divided stablecoin issuers into two categories, with different capital requirements depending on the currency backing their digital tokens.
Under the new framework, companies issuing naira-backed stablecoins, classified as Class 1 operators, must maintain a minimum paid-up capital of ₦10 billion.
Meanwhile, operators issuing foreign currency-backed stablecoins, including those pegged to the US dollar, are classified as Class 2 issuers and must maintain at least ₦15 billion in paid-up capital.
The CBN stressed that these financial requirements are not just conditions for obtaining a license but must be maintained throughout the company’s operations. It also warned that foreign-based companies cannot avoid Nigerian regulations simply by operating from outside the country.
The bank specifically stated that there would be no exemption for offshore issuers regarding incorporation, licensing, and capital requirements.
Beyond stablecoin issuers, the new guidelines also introduce stricter monitoring requirements for Virtual Asset Service Providers (VASPs), particularly those involved in peer-to-peer (P2P) cryptocurrency transactions.
Under the directive, crypto platforms must identify customers who regularly conduct P2P transactions as a business. Factors to consider include transaction volume, frequency, the number of people involved, and whether individuals publicly advertise exchange rates.
Operators are expected to subject such customers to enhanced checks, impose appropriate transaction limits, and report identified cases to the CBN.
The apex bank further clarified that being identified as a regular P2P trader does not automatically authorize an individual to operate a cryptocurrency exchange business. Those whose activities require regulatory approval must obtain the necessary license, stop the activity, or operate as authorized agents of licensed providers.
The CBN acknowledged that stablecoins and other virtual assets offer opportunities to improve payments, international transfers, and business transactions. However, it warned that their rapid growth also presents risks to financial stability, monetary policy, foreign exchange management, and consumer protection.
With these new requirements, the CBN appears determined to bring Nigeria’s expanding digital asset industry under tighter regulatory supervision. While the higher capital thresholds could make entry more challenging for smaller operators, the measures are intended to ensure that companies handling digital financial transactions have sufficient financial capacity, stronger compliance structures, and greater accountability.
“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
