Tinubu Signs Order to Regulate Cryptocurrencies in Nigeria

Nigeria's President Bola Tinubu has signed an executive order that marks a significant shift in regulating cryptocurrencies and stablecoins in the country. The move aims to harmonize regulations, protect citizens from fraud, and enable responsible innovation.

The executive order establishes a Virtual Asset Council, which will develop a framework for virtual assets that aligns with Nigeria's national security, economic, and social objectives. The council includes representatives from various government agencies, including the Central Bank of Nigeria, Securities Exchange Commission, and Nigerian Financial Intelligence Unit.

The CBN will establish a sandbox for virtual assets, providing a controlled environment for operators to test products and services under regulatory oversight. This is seen as a way to ensure that innovations are properly examined and supervised before reaching consumers.

Rotimi Ogunyemi, a Lagos-based technology attorney, notes that the new regulatory environment could have implications for Nigeria's stablecoin sector. He suggests that regulation should require credible reserves, separation of customer assets, reliable redemption, and clear consumer protection for stablecoins.