CBN Introduces New Regulations for Virtual Assets in Nigeria

The Central Bank of Nigeria (CBN) has introduced a regulatory framework for non-security virtual assets, which includes stablecoin issuers, cryptocurrency exchanges, and wallet providers. The guidelines, titled Regulations for the Operations of Non-Security Virtual Assets in Nigeria, establish requirements for various activities such as issuance, distribution, conversion, custody, transfer, redemption, and settlement of regulated virtual assets.

The framework encompasses naira-referenced stablecoins, foreign currency-referenced stablecoins, and Deposit Money Tokens (DMTs). It aims to support innovation in digital payments and financial services while addressing risks related to monetary policy, financial stability, consumer protection, illicit financial flows, and foreign exchange management.

The guidelines apply to activities conducted in Nigeria or directed at Nigerian customers, including those by foreign issuers and service providers. The CBN's approach focuses on overseeing all stages of virtual asset transactions, classifying regulated tokens into categories, and covering businesses that facilitate fiat and virtual asset transactions.