CBN updates guidelines for stablecoins operation
Central Bank of Nigeria Sets N15 Billion Minimum Capital Requirement for Virtual Asset Providers
By Emma Ujah, Abuja Bureau Chief
The Central Bank of Nigeria (CBN) has released guidelines establishing new capital requirements for virtual asset providers in the country. Effective immediately, the guidelines mandate a minimum paid-up capital of N10 billion for Class 1 issuers and N15 billion for Class 2 issuers.
This directive is detailed in a circular dated November 5, 2026, and signed by Mr. Musa Jimoh, the Director of Payments Systems Policy. The circular, referenced as PSP/DIR/PUB/CIR/001/004, specifies that Class 1 licensed issuers, which relate to naira-referenced stablecoins, must maintain their capital at the specified amount at all times. Similarly, Class 2 issuers, which deal with stablecoins pegged to foreign currencies like the US dollar, must adhere to the higher capital requirement.
In the guidelines, the CBN emphasized that there are no exemptions for offshore issuers regarding incorporation, licensing, or capital requirements. Both classes of issuers must comply with capital deposit regulations and provide evidence of such compliance as outlined in Section 17 of the guidelines.
The CBN identified the rise of virtual assets, stablecoins, and tokenized payment systems as significant opportunities for innovation in various sectors, including payments and digital commerce. However, the bank also cautioned that increased adoption poses risks to financial stability, consumer protection, and effective monetary policy.
“The establishment of these guidelines is part of our mandate to ensure monetary and financial stability and to regulate Nigeria’s payments system,” the CBN stated. The framework aims to establish a risk-based approach for licensing, regulation, and supervision of Non-Security Virtual Assets and related Virtual Asset Service Providers (VASPs).
The guidelines further address governance, prudent standards, consumer protection, and compliance requirements for entities engaged in non-security virtual asset activities. They also focus on enhancing the integrity and efficiency of the Nigerian financial system.
Among the responsibilities placed on issuers is the obligation to prevent money laundering and terrorism financing. Issuers must implement rigorous customer identification criteria approved by their boards and reported to the CBN. This includes monitoring transaction volumes, frequencies, and marketing practices.
The CBN has underscored that these customer identification measures do not grant authorization to conduct regulated activities unless proper licensing is obtained.
The objectives of the new regulations are to establish a comprehensive, risk-based framework governing the issuance, distribution, and settlement of Non-Security Virtual Assets while ensuring the effectiveness of monetary policy and safeguarding the stability of the financial system.
These regulations specifically apply to various types of stablecoins and tokens designated by the CBN as regulated within its scope of oversight.
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