CBN Tightens Stablecoin Rules, Sets ₦15 Billion Capital Requirement for Dollar-Token Issuers

• New CBN stablecoin rules introduce licensing requirements and capital thresholds for issuers, including ₦15 billion for companies offering foreign-currency-backed tokens.

The Central Bank of Nigeria has introduced a regulatory framework for stablecoins and other non-security virtual assets, setting new requirements for companies operating in the sector.

The regulations took effect on November 5, according to reporting on the accompanying circular.

Under the framework, minimum paid-up capital requirements include:

Foreign-currency stablecoins offered in Nigeria must be issued through a Nigerian-incorporated entity holding the relevant Class 2 licence.

The thresholds concern regulated businesses, rather than minimum balances required of individual customers.

The framework covers activities including issuance, exchange, custody, transfers and settlement. The CBN says its objectives include protecting consumers against reserve mismanagement, fraud and difficulties redeeming tokens.

It also distinguishes non-security virtual assets from securities and investment products falling under the Securities and Exchange Commission’s jurisdiction.