Nigeria’s Central Bank has unveiled new licensing and reserve requirements for cryptocurrency companies, tightening regulations on stablecoins and digital asset payment services. The Regulations for the Operations of Non-Security Virtual Assets took effect immediately on Thursday, though existing operators have 180 days to apply for licenses. The Central Bank of Nigeria (CBN) aims to foster responsible innovation while safeguarding consumers and financial stability.
Stablecoin issuers must now fully back their tokens with reserve assets and maintain an additional buffer of at least 2% of their value. At least 40% of reserves must be in cash or highly liquid assets. Naira-backed stablecoin issuers need a minimum paid-up capital of 10 billion naira ($7.4 million), while foreign currency-backed issuers require 15 billion naira ($11.1 million). Payment-related crypto services, including exchanges and custody providers, must maintain a minimum paid-up capital of 1 billion naira ($742,000).
The regulations also ban algorithmic stablecoins and tokens lacking enforceable redemption rights. This move follows President Bola Tinubu’s July executive order to coordinate crypto oversight among Nigerian authorities. Nigeria has previously taken a restrictive stance on crypto trading, including limiting banking access for exchanges and restricting peer-to-peer trading.
The country has faced international attention over its dispute with Binance, the world’s largest cryptocurrency exchange by trading volume. Binance discontinued its Nigerian naira services in March 2024 amid government scrutiny. Nigerian authorities detained Binance executive Tigran Gambaryan for nearly eight months before dropping money laundering charges in October 2024. More recently, Nigeria’s revenue agency introduced crypto tax collection rules in August 2026.