WirepolicyBrief
Nigeria’s Central Bank Now Requires Offshore Stablecoin Issuers to License Locally
Central Bank of Nigeria rules that took effect Nov. 5 require stablecoin issuers serving Nigerians to incorporate locally, hold at least 10 billion to 15 billion naira in capital and back tokens with 2% extra reserves.
Brief
Nigeria's central bank has published a rulebook for non-security virtual assets, effective November 5. Under it, offshore stablecoin issuers can no longer serve local customers on a foreign license alone. Dollar- and other foreign-currency-pegged tokens fall under Class 2 and need a Nigeria-incorporated issuer licensed by the bank for that class. Paid-up capital must reach 15 billion naira for Class 2 issuers, against 10 billion for naira tokens. Penalties for unlicensed activity start at 100 million naira and add at least 1 million naira per day. Licensed platforms may not offer stablecoins lacking central bank token approval, which would cover USDT until a local Class 2 issuer exists. Existing operators have until May 4, 2027 to seek licenses, and those keeping current scale must register by December 5.
Why it matters: It means foreign-currency stablecoins serving Nigerian users now need a locally incorporated, CBN-licensed issuer, a significant change for offshore issuers and the platforms that carry their tokens.
Read the full story
Dextape context
Built from Dextape’s own wire, stories and glossary.
Terms in this story
- Stablecoin
- A token designed to track a reference value, usually the US dollar, through reserves, crypto collateral or an algorithm.
Mentioned in this story
Open a coin page for its current price.