Reporting · policy
Nigeria's central bank issues stablecoin and virtual asset framework
The Central Bank of Nigeria has set out separate licensing tiers for naira and foreign-currency stablecoins, with capital minimums and approval rules for each token.
Quick take
- Nigeria's central bank has issued a new framework covering non-security virtual assets, including stablecoins.
- Naira-linked issuers need at least 10 billion naira in capital, while foreign-currency tokens require 15 billion naira.
- The rules also restrict algorithmic designs that rely on market mechanisms and put each token under regulatory approval.
NewsBTC reported that the Central Bank of Nigeria has issued a new framework for non-security virtual assets. The framework, dated November 5, sets out separate stablecoin licences for naira-linked tokens and foreign-currency tokens. Under the framework, Class 1 naira-linked issuers need a minimum of 10 billion naira in capital.
Foreign-currency tokens, classed as Class 2, face a 15 billion naira minimum, and the bank may set higher capital amounts. Regulatory approval is needed for every token. Algorithmic designs that rely on market mechanisms are restricted. Anti-money laundering, sanctions and transaction monitoring are also covered, and the framework applies to activities in, from or targeting Nigeria.
Investment-like tokens remain under separate oversight from the securities regulator, according to the framework. The framework also includes transitional provisions for existing operators.
For any issuer, the class assigned determines the minimum capital it must hold, while the approval requirement applies to each token it offers.
Sources
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