The Central Bank of Nigeria (CBN) has introduced stricter regulations for cryptocurrency operators, requiring companies issuing foreign currency-backed stablecoins to maintain a minimum paid-up capital of N15 billion before operating in the country.
The new framework also places tighter controls on peer-to-peer (P2P) cryptocurrency transactions, with platforms expected to obtain the necessary regulatory approvals and strengthen identity verification procedures for users involved in digital asset exchanges.
The regulations, which took effect on November 5, 2026, establish a formal supervisory framework for stablecoin issuers and virtual asset service providers operating in or targeting the Nigerian market. According to Brandspur Banking News Desk, the measures are aimed at strengthening oversight of digital financial transactions while addressing risks associated with cryptocurrency activities.
Under the new requirements, companies issuing stablecoins linked to foreign currencies, including dollar-backed tokens such as USDT and USDC, must obtain the appropriate CBN licence and operate through entities incorporated in Nigeria.
The N15 billion capital threshold applies to issuers of foreign currency-referenced stablecoins, classified under the framework as Class 2 issuers. Operators cannot rely solely on licences obtained in other countries to offer their tokens to Nigerian users.
The rules also distinguish between stablecoin issuers and other virtual asset service providers. Companies providing non-security virtual asset services are subject to a minimum capital requirement of N1 billion, while issuers of naira-backed stablecoins must maintain at least N10 billion in paid-up capital.
The CBN’s intervention also extends to P2P cryptocurrency trading, a system that allows individuals to buy and sell digital assets directly with one another, often through online platforms.
Under the revised framework, platforms facilitating transactions involving naira conversions and foreign currency-backed stablecoins must secure specific regulatory approval before conducting such activities.
The requirements are particularly relevant to Nigerians who use P2P platforms to exchange naira for dollar-linked digital assets or convert cryptocurrency holdings into local currency.
Operators are also expected to strengthen customer identification and verification measures, alongside complying with applicable anti-money laundering and transaction reporting obligations.
The regulations make clear that approval to facilitate P2P transactions does not automatically authorise a platform to operate a foreign exchange business or establish an alternative foreign exchange market.
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For transactions involving naira and foreign currency-backed stablecoins, the naira component must be settled through, or reported to, an authorised dealer designated by the CBN, subject to the prescribed foreign exchange monitoring and documentation requirements.
The new framework also gives the apex bank greater supervisory access to the records, systems and reserve arrangements of regulated operators, including those operating through international corporate structures.
The measures introduce additional compliance responsibilities for cryptocurrency businesses serving Nigerian customers, while users may encounter more stringent verification requirements when conducting digital asset transactions.
The CBN’s latest regulations represent a significant development in Nigeria’s approach to cryptocurrency oversight, particularly as stablecoins and P2P platforms continue to serve as channels for digital payments and currency exchanges.
