New guidelines introduce stricter licensing and oversight rules for virtual asset providers, with the apex bank tightening requirements around customer verification, foreign exchange management and anti-money laundering compliance……
The Central Bank of Nigeria (CBN) has introduced fresh capital requirements for virtual asset providers, directing issuers of naira- and foreign currency-backed stablecoins to maintain minimum paid-up capital of N10 billion and N15 billion, respectively.
The requirements are contained in new guidelines issued in a circular dated November 5, 2026, with reference number PSP/DIR/PUB/CIR/001/004 and signed by the Director of Payments Systems Policy, Musa Jimoh.
Under the framework, operators classified as Class 1 licensed issuers must maintain a minimum paid-up capital of N10 billion, while those under Class 2 are required to have at least N15 billion.
The apex bank stated that the capital requirements must be maintained both at the point of licensing and throughout the period of operation, adding that it reserves the right to prescribe higher amounts where necessary.
It also clarified that foreign-based issuers will not be exempted from Nigerian incorporation, licensing or capital requirements.
The classification distinguishes between stablecoins linked to the naira and those designed to maintain a relatively stable value against foreign currencies, including the US dollar.
Class 1 covers issuers of naira-referenced stablecoins, while Class 2 applies to foreign currency-referenced stablecoins.
The new rules establish a broader regulatory structure for the issuance and operation of non-security virtual assets in Nigeria, including stablecoins, Deposit Money Tokens (DMTs) and other related digital payment instruments.
According to the CBN, the growing adoption of virtual assets presents opportunities to improve payments, cross-border remittances, settlements and digital commerce.
However, it warned that their expansion also creates potential threats to financial stability, monetary policy implementation, consumer protection, foreign exchange management and the integrity of the financial system.
The bank said the guidelines were developed in line with its statutory responsibility to maintain monetary and financial stability and oversee Nigeria’s payments system.
Beyond capital requirements, the framework establishes obligations covering corporate governance, prudential standards, operational resilience, consumer protection, anti-money laundering and counter-terrorism financing measures, as well as regulatory reporting.
The CBN explained that the objective is to encourage responsible innovation while ensuring that virtual asset activities do not undermine the country’s financial system.
P2P traders face stricter identification requirements
A major feature of the new framework is the introduction of tighter monitoring requirements for customers who regularly trade regulated tokens through peer-to-peer (P2P) platforms.
The CBN has directed virtual asset providers to establish board-approved criteria for identifying customers who buy, sell or exchange regulated tokens as a business.
The assessment will consider factors such as transaction volumes, frequency of trades, the number of counterparties involved and whether the customer publicly advertises exchange rates.
Once identified, such customers will be subject to enhanced due diligence and transaction limits, while providers must report them to the apex bank.
The CBN also clarified that identifying a customer as a frequent P2P trader does not automatically authorise the individual to conduct regulated virtual asset activities.
Customers whose activities require formal authorisation must obtain the appropriate licence, discontinue the activity or operate as an agent of a licensed provider, subject to the bank’s directives.
The measures are intended to prevent digital asset platforms from becoming channels for money laundering, terrorism financing and other illicit financial activities.
Foreign exchange management and consumer protection take priority
The updated framework also places considerable emphasis on protecting the naira and preserving the CBN’s ability to monitor movements in foreign exchange and capital flows.
Among its stated objectives is the establishment of comprehensive rules governing the issuance, distribution, conversion, custody, transfer, redemption and settlement of regulated virtual assets.
The bank said the measures would help preserve the effectiveness of monetary policy instruments while strengthening oversight of activities that could influence foreign exchange market dynamics.
Consumer protection is another major component, with issuers expected to maintain safeguards against insolvency, poor management of reserve assets, refusal to honour redemption requests and fraudulent practices.
The regulations cover naira-referenced stablecoins, foreign currency-backed stablecoins, Deposit Money Tokens and other digital tokens designated by the CBN as falling within its regulatory responsibilities.
Other instruments may also be brought under the framework where the bank considers them relevant to payments, settlement, banking, foreign exchange or financial stability.
The latest intervention marks a further expansion of the CBN’s oversight of Nigeria’s digital financial ecosystem, as the regulator seeks to balance the growth of virtual asset services with stronger safeguards against financial crime, consumer losses and risks to monetary stability.
