•Sets N15bn capital requirement

By Emma Ujah, Abuja Bureau Chief

The Central Bank of Nigeria has issued guidelines for virtual asset providers in the country, setting minimum capital requirement of N10 billion and N15 billion for Classes 1 and 2 issuers, respectively.

This was contained in a circular with reference number PSP/DIR/PUB/CIR/001/004, date November 5, 2026 and signed by the Director of Payments Systems Policy, Mr. Musa Jimoh.

According to the bank, “A Class 1 Licensed Issuer shall maintain paid-up capital of N10 billion Naira or such higher amount as the Bank may prescribe, on entry and at all times thereafter. Class 2 Licensed Issuer shall maintain minimum paid-up capital of N15 billion or such higher amount as the Bank may prescribe, on entry and at all times thereafter.

“Both classes shall comply with the capital deposit and corresponding evidence and supplementary requirements in Section 17. There is no offshore issuer exemption from incorporation, licensing or capital.”

Class 2 stablecoins are digital tokens designed to maintain a stable value against foreign currencies, including the US dollar, while Class 1 refers to issuers of naira-referenced stablecoins.

CBN said the emergence of virtual assets, stablecoins, and tokenised payment instruments “presents significant opportunities for innovation in payments, remittances, settlement, and digital commerce,” but that, “their growing adoption also introduces risks relating to financial stability, monetary policy, consumer protection, illicit finance, operational resilience, and foreign exchange management.”

It added that the guidelines were issued pursuant to its statutory mandate to promote monetary and financial stability and regulate Nigeria’s payments system.

“These Guidelines establish a risk-based framework for the licensing, regulation, supervision, and oversight of Non-Security Virtual Assets, including stablecoins, Deposit Money Tokens (DMTs), and related Virtual Asset Service Providers (VASPs).

“These Guidelines seek to support responsible innovation while safeguarding the integrity, stability, and efficiency of the Nigerian financial system.

“These Guidelines also seek to provide regulatory requirements relating to governance, prudential standards, consumer protection, operational resilience, AML/CFT/CPF compliance, and reporting obligations for entities and persons engaged in regulated non-security virtual asset activities within or involving Nigeria,” the bank explained.

The CBN’s updated framework outlines clear boundaries for Virtual Asset Service Providers (VASPs), with a sharp focus on foreign exchange liquidity, consumer protection, and peer-to-peer (P2P) trading identity protocols.

Curbing money laundering

The guidelines place great responsibilities on issuers to ensure that their activities do not aid money laundering or terrorism financing, as they are required to provide detailed data on their customers.

To avert it from being used for money laundering on terrorism financing, the CBN said “A provider shall maintain criteria, approved by its board and notified to the Bank, for identifying a customer that buys, sells or exchanges Regulated Tokens on the Person-to-Person (P2P) Service as a business, having regard to transaction volume, frequency, number of counterparties and advertising of rates.

“The provider shall apply enhanced due diligence and transaction limits to such customer and report the customer to the Bank under Section 10.8. Such identification shall not constitute authorisation to conduct a regulated activity. A customer conducting an activity requiring authorisation shall obtain the applicable licence or authorisation, cease the activity, or operate as an agent of the provider under Section 21, as the Bank may direct.”

Among others, the objectives, the apex bank said were to: establish a comprehensive, risk-based regulatory framework governing the issuance, distribution, conversion, custody, transfer, redemption and settlement of Non-Security Virtual Assets, including stablecoins and Deposit Money Tokens; preserve the effectiveness of the Bank’s monetary policy instruments and its capacity to monitor and manage capital flows and foreign exchange dynamics; and protect holders and consumers from issuer insolvency, reserve or backing mismanagement, redemption denial, fraud and other conduct risks; safeguard the stability and integrity of the Nigerian financial system.

The regulations applied to Naira-Referenced Stablecoins; Foreign Currency-Referenced Stablecoins; Deposit Money Tokens (DMTs); Other Designated Tokens determined by the CBN to fall within its mandate over payments, settlement, foreign exchange, banking or financial stability; and any other token designated by the bank as a Regulated Token under these Guidelines.

Vanguard News

CBN updates guidelines for stablecoins operation

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