CBN Unveils Regulatory Framework for Stablecoins, Digital Assets
The Central Bank of Nigeria (CBN) has introduced a comprehensive regulatory framework for non-security virtual assets, including stablecoins and deposit money tokens, to strengthen oversight of emerging digital financial services.
The new regulations establish licensing, authorisation and supervisory requirements for virtual asset issuers and service providers operating in or targeting the Nigerian market.
The framework, titled Regulations for the Operations of Non-Security Virtual Assets in Nigeria, took effect on November 5, 2026, according to a circular issued by the CBN’s Payments System Policy Department.
The apex bank said the regulations were designed to promote responsible innovation, strengthen the integrity of the financial system and provide an appropriate regulatory framework for emerging digital payment instruments.
Under the new framework, stablecoin issuers, virtual asset service providers and other regulated operators will be subject to requirements covering licensing, capital adequacy, reserve backing, liquidity and redemption arrangements.
The regulations also prescribe standards for corporate governance, risk management, internal controls, cybersecurity and operational resilience.
On consumer protection, the CBN said operators must comply with requirements for safeguarding customer assets, making appropriate disclosures and establishing effective complaints management systems.
The framework also introduces measures to address financial crime risks associated with digital asset transactions, including anti-money laundering and counter-terrorist financing obligations, sanctions screening, transaction monitoring and blockchain analytics.
Virtual asset service providers are also required to comply with the Travel Rule and conduct due diligence on counterparties, particularly other virtual asset service providers involved in transactions.
The regulations apply to individuals and organisations conducting regulated activities in or from Nigeria, directing such activities at Nigerian customers or undertaking operations that could materially affect the country’s payment system, financial system, foreign exchange market or financial stability.
The CBN stated that the requirements could apply irrespective of whether an operator maintains a physical presence in Nigeria.
This means that foreign virtual asset operators targeting Nigerian customers or undertaking activities with material implications for the country’s financial system may also fall within the regulatory framework.
The apex bank, however, clarified that the new regulations do not displace the statutory responsibilities of the Securities and Exchange Commission (SEC) or other competent authorities.
It explained that activities involving security virtual assets, securities, investment contracts and other capital-market products would remain subject to the applicable capital-market regulatory framework.
Where an activity involves both non-security virtual assets and matters under another regulator’s jurisdiction, operators are required to obtain the relevant approvals from each competent authority.
The CBN further directed affected financial institutions, issuers, service providers, operators and other stakeholders to familiarise themselves with the regulations and ensure compliance with the applicable licensing, prudential, operational, reporting and technology requirements.
The framework also provides for regulatory enforcement, administrative sanctions and orderly wind-down arrangements for operators unable to continue their regulated activities.
