CBN imposes strict new crypto and stablecoin rules
6.7 Regulation CBN enforces strict identity checks, local licensing, and high reserve requirements for crypto and stablecoin operators. Algorithmic stablecoins are banned. Operators have 180 days to comply with the new rules.
The Central Bank of Nigeria (CBN) has rolled out comprehensive regulations for cryptocurrency and stablecoin operations. Peer-to-peer (P2P) crypto platforms must now link every transaction to a corresponding bank payment, verify traders’ identities, and ensure the naira account name and Bank Verification Number (BVN) match the verified customer before releasing tokens. These rules apply to regulated tokens, including stablecoins and deposit money tokens, but not to direct transfers between individuals without platform involvement. Offshore stablecoin issuers must incorporate and obtain a local license, with Class 1 (naira-pegged) issuers needing at least N10 billion in capital, and Class 2 (foreign currency-pegged) issuers requiring N15 billion. All tokens must be fully backed by reserves plus a 2% buffer, and algorithmic stablecoins are banned. Existing operators have 180 days to apply for a license, must register within 30 days, and begin regulatory reporting within 60 days. Only entities with specific CBN approval can offer P2P services, and standalone P2P licenses will not be issued.
