BY NKECHI NAECHE-ESEZOBOR—The apex regulator, the Central Bank of Nigeria (CBN) on Friday issued regulations for the Operations of Non-Security Virtual Assets in Nigeria, setting out a framework for licensing, regulating and supervising stablecoins, virtual asset service providers and related activities.
According to a circular to virtual asset service providers and stakeholders in the financial services industry, the apex bank said the regulations are meant to promote responsible innovation, strengthen the integrity of the Nigerian financial system and provide an appropriate framework for emerging digital payment instruments.
The CBN said the regulations are issued under the CBN Act, 2007, the Banks and Other Financial Institutions Act, 2020, and other applicable laws. It described them as a comprehensive, risk-based framework covering the licensing, authorisation, regulation, supervision and oversight of non-security virtual assets in Nigeria.
The framework covers stablecoins, Deposit Money Tokens, virtual asset service providers, virtual asset payment services, platform-facilitated peer-to-peer services, and custody, transfer, remittance, clearing and settlement activities.
The regulations also set requirements on the classification and designation of regulated tokens and activities, and on the licensing of issuers and providers of non-security virtual asset services. Other areas covered include capital, reserve-backing, liquidity and redemption; corporate governance, risk management and internal controls; and technology risk, cybersecurity and operational resilience.
They further address the safeguarding of reserve and customer assets; customer protection, disclosures and complaints management; and anti-money laundering, counter-terrorist financing and counter-proliferation financing obligations. Sanctions screening, transaction monitoring, blockchain analytics, Travel Rule compliance, counterparty due diligence, regulatory reporting, supervisory access, information sharing, enforcement, administrative sanctions and orderly wind-down arrangements are also included.
The CBN said the regulations apply to persons carrying out regulated activities in or from Nigeria, those directing such activities at persons in Nigeria, and those whose activities may materially affect the country’s payments system, financial system, foreign exchange market or financial stability. They may apply whether or not the person has a physical presence in Nigeria.
The apex bank said the regulations do not displace the statutory mandate of the Securities and Exchange Commission or any other competent authority. Activities involving security virtual assets, securities, investment contracts or other capital-market products remain subject to the capital-market regulatory framework. Where an activity involves both non-security virtual assets and matters under another authority’s mandate, approvals must be obtained from each competent authority.
All affected institutions, issuers, service providers, operators, promoters and other stakeholders are required to familiarise themselves with the regulations and comply fully with the applicable requirements.
The regulations take effect from November 5, 2026. The circular was issued by the CBN’s Payments System Policy Department.
