Nigeria imposes N15bn capital rule, bans algorithmic stablecoins
6.5 Regulation Nigeria’s new crypto rules require up to N15bn in capital, ban algorithmic stablecoins, and mandate separate CBN and SEC approvals, tightening oversight for all virtual asset providers.
Nigeria has implemented comprehensive regulations for cryptocurrency and stablecoin issuers, clearly defining the roles of the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC). Companies offering stablecoin payment, remittance, and custody services must now secure separate CBN approval and maintain substantial paid-up capital: N15 billion for foreign-currency stablecoins like USDT and USDC, N10 billion for naira stablecoins, and N1 billion for other virtual asset service providers. The CBN has banned algorithmic stablecoins and requires all stablecoins to be fully backed by reserves, with an additional collateral buffer. Issuers must be registered Nigerian entities, and foreign firms cannot circumvent these rules through offshore licenses or intermediaries. The new regulations also introduce stricter approval processes and enhanced identity verification for peer-to-peer crypto transactions. While the SEC continues to oversee crypto trading and securities, the CBN supervises payment and settlement activities. These measures increase compliance costs and require separate capital for each regulator, aiming to clarify regulatory responsibilities and strengthen oversight of Nigeria’s expanding crypto sector.
