The Central Bank of Nigeria has introduced a pilot supervisory framework targeting cryptocurrency and virtual asset operators, as part of efforts to tighten regulatory control over Nigeria’s growing digital finance ecosystem.
The initiative focuses on selected Virtual Asset Service Providers (VASPs), including Flutterwave, Paystack, KuCoin, alongside other platforms such as cNGN, Juicyway, and KoinKoin. The programme is designed to strengthen compliance with anti-money laundering and counter-terrorism financing standards without altering the current legal status of cryptocurrencies in Nigeria.
Brandspur Banking News Desk reports that the pilot scheme forms part of a broader regulatory framework aligned with existing financial laws, including the Money Laundering (Prevention and Prohibition) Act 2022 and the Banks and Other Financial Institutions Act 2020. The central bank emphasised that participation does not equate to licensing or official approval but serves as a structured engagement to assess operational risks and compliance readiness within the sector.
Under the programme, participating firms will submit monthly compliance performance reports and undergo detailed regulatory reviews covering governance systems, customer verification processes, transaction monitoring, and cross-border activities. The exercise will also involve collaboration with the Nigeria Financial Intelligence Unit to enhance oversight and data-driven supervision.
The regulator further stated that companies must demonstrate alignment with global standards, particularly recommendations set by the Financial Action Task Force, including requirements around transaction transparency and cross-border data sharing protocols.
The pilot is expected to run in phases, with subsequent rounds already planned, as the apex bank seeks to deepen its understanding of the virtual asset landscape while promoting transparency, accountability, and financial system integrity.
