Nigeria's CBN Issues Regulatory Framework for Stablecoin Operations

Odaily Planet Daily reports: The Central Bank of Nigeria has issued regulatory guidelines for the operation of non-securities virtual assets, requiring that foreign currency stablecoins be issued only by entities registered in Nigeria and holding the corresponding issuance license, and must be approved by the central bank before being offered to local users—foreign licenses are not acceptable. The minimum paid-up capital requirements are NGN 10 billion for Naira stablecoins, NGN 15 billion for foreign currency stablecoins, and NGN 1 billion for other service providers. Stablecoins must be fully backed at a 1:1 ratio with an additional 2% over-collateralization, and holders may redeem them at face value on the next business day; issuers are prohibited from paying interest or returns. Algorithmic stablecoins and fiat-backed stablecoins primarily collateralized by crypto assets are banned. Existing operators must register with the central bank within 30 days of the regulation’s effective date and apply for a license within 180 days; during the transition period, they may only maintain their current scale of operations, and P2P trading platforms are subject to the same rules.