Nigeria’s central bank introduced a licensing framework for crypto companies that took effect immediately, giving existing operators 180 days to apply for licenses or authorizations, according to Cointelegraph’s report published on Nov. 6, 2026.
The Central Bank of Nigeria (CBN) issued the Regulations for the Operations of Non-Security Virtual Assets on Thursday. The framework covers stablecoin issuers, crypto payment providers, exchanges, custodians and other covered service providers.
The CBN said its aim was to support responsible innovation while protecting consumers and financial stability. The rules followed President Bola Tinubu’s July executive order, which sought to coordinate crypto oversight among Nigerian authorities without changing their existing powers.
Full backing, a reserve buffer and capital thresholds
Under the regulations, stablecoin issuers must fully back their tokens with reserve assets and hold an additional buffer of at least 2% of their value. At least 40% of reserves must be cash or qualifying highly liquid assets.
The minimum paid-up capital requirements are:
- Naira-backed stablecoin issuers: 10 billion naira ($7.4 million).
- Foreign currency-backed stablecoin issuers: 15 billion naira ($11.1 million).
- Payment-related crypto service providers, including exchange and custody services: 1 billion naira ($742,000).
The framework also prohibits stablecoins that rely primarily on algorithms, rather than eligible reserves, to maintain their value. Tokens without enforceable redemption rights are prohibited as well.
A further step in Nigeria’s crypto oversight
The rules add licensing, backing and redemption requirements to Nigeria’s oversight of one of Africa’s largest crypto markets. They follow earlier restrictions on banking access for exchanges and efforts to restrict peer-to-peer trading using local currency.
Nigeria’s dispute with Binance, the world’s largest cryptocurrency exchange by trading volume, drew international attention. Binance discontinued its naira services in March 2024 amid government scrutiny of crypto trading and allegations of currency manipulation. Authorities also detained Binance executive Tigran Gambaryan for nearly eight months before dropping money laundering charges against him in October 2024.
In August 2026, Nigeria’s revenue agency introduced crypto tax collection rules for digital asset platforms and peer-to-peer marketplaces.
The November framework sets requirements for reserve quality, capital and redemption rights. The supplied report does not establish how those requirements will affect trading activity, market liquidity or crypto prices.
Original publication: Nov. 6, 2026, at 21:57:14 UTC+08:00.
Source: Cointelegraph — Nigeria sets new crypto licensing rules, bans algorithmic stablecoins
