The Central Bank of Nigeria (CBN) has introduced new regulatory guidelines for virtual asset providers, setting minimum capital requirements of N10 billion and N15 billion for Class 1 and Class 2 licensed issuers, respectively.
The requirements were contained in a circular dated 5 November 2026, with reference number PSP/DIR/PUB/CIR/001/004, signed by the Director of Payments Systems Policy, Musa Jimoh.
Under the new guidelines, Class 1 licensed issuers are required to maintain a minimum paid-up capital of N10 billion, while Class 2 issuers must maintain at least N15 billion.
The CBN stated that the capital requirements must be met upon entry into the market and maintained at all times, adding that it reserves the right to prescribe higher amounts.
The bank also clarified that both categories of issuers must comply with the capital deposit, evidence and supplementary requirements outlined in Section 17 of the guidelines.
It further stated that offshore issuers would not be exempted from incorporation, licensing or capital requirements.
Class 1 issuers are those responsible for issuing naira-referenced stablecoins, while Class 2 issuers deal with stablecoins designed to maintain a stable value against foreign currencies, including the US dollar.
Explaining the rationale behind the new framework, the CBN acknowledged that virtual assets, stablecoins and tokenised payment instruments offer opportunities for innovation in payments, remittances, settlements and digital commerce.
However, it warned that their increasing adoption also creates risks relating to financial stability, monetary policy, consumer protection, illicit financial activities, operational resilience and foreign exchange management.
The apex bank said the guidelines were introduced in line with its statutory responsibility to promote monetary and financial stability and regulate Nigeria’s payment system.
According to the CBN, the framework establishes a risk-based system for licensing, regulating, supervising and overseeing non-security virtual assets, including stablecoins, Deposit Money Tokens (DMTs) and related Virtual Asset Service Providers (VASPs).
It added that the regulations were designed to encourage responsible innovation while protecting the integrity, stability and efficiency of Nigeria’s financial system.
The guidelines also introduce requirements covering corporate governance, prudential standards, consumer protection, operational resilience, anti-money laundering and counter-terrorism financing and proliferation financing compliance, as well as reporting obligations.
CBN Targets Money Laundering Through P2P Transactions
As part of efforts to prevent virtual asset platforms from being used for money laundering and terrorism financing, the CBN has placed additional responsibilities on providers to identify customers involved in peer-to-peer (P2P) transactions.
Under the guidelines, providers are required to establish criteria, subject to board approval and notification to the CBN, for identifying customers who buy, sell or exchange regulated tokens through P2P services as a business.
The criteria must take into account transaction volumes, frequency, the number of counterparties involved and whether the customer advertises exchange rates.
The bank directed providers to apply enhanced due diligence and transaction limits to such customers and report them to the CBN in accordance with Section 10.8 of the guidelines.
It stressed that identifying a customer as a P2P trader does not automatically authorise the person to conduct a regulated activity.
Customers engaging in activities that require regulatory approval must obtain the appropriate licence or authorisation, stop the activity or operate as an agent of the provider under Section 21, as directed by the bank.
Objectives and Scope of the Guidelines
The CBN said the new framework is intended to establish comprehensive, risk-based regulations for the issuance, distribution, conversion, custody, transfer, redemption and settlement of non-security virtual assets, including stablecoins and Deposit Money Tokens.
Other objectives include preserving the effectiveness of monetary policy instruments and strengthening the bank’s ability to monitor and manage capital flows and foreign exchange activities.
The guidelines are also designed to protect consumers and token holders against issuer insolvency, poor management of reserves or backing assets, refusal to honour redemption requests, fraud and other risks associated with virtual asset transactions.
The bank further said the framework would help safeguard the stability and integrity of Nigeria’s financial system.
The regulations cover naira-referenced stablecoins, foreign currency-referenced stablecoins, Deposit Money Tokens and other designated tokens that fall within the CBN’s regulatory responsibilities for payments, settlements, foreign exchange, banking and financial stability.
They also apply to any other token the bank may designate as a regulated token under the guidelines.
