CBN issues new regulations for non-security virtual assets
CBN
Nike Popoola
The Central Bank of Nigeria (CBN) has issued new regulations governing the operations of non-security virtual assets in Nigeria, establishing a comprehensive, risk-based framework for licensing, authorisation, regulation and supervision of virtual asset activities.
The regulations, which took effect on November 5, 2026, are aimed at promoting responsible innovation, strengthening the integrity of the Nigerian financial system and providing an appropriate regulatory framework for emerging digital payment instruments. The circular was signed by Musa I. Jimoh, Director, Payments System Policy Department.
The Bank announced the development in a circular dated November 5, 2026, issued by its Payments System Policy Department and addressed to Virtual Asset Service Providers in Nigeria and stakeholders in the financial services industry.
According to the CBN, the regulations cover stablecoins, Deposit Money Tokens, Virtual Asset Service Providers and virtual asset payment services, as well as platform-facilitated peer-to-peer services, custody, transfer, remittance, clearing and settlement activities.
The framework also establishes requirements for the classification and designation of regulated tokens and activities, licensing and authorisation of issuers and service providers, capital, reserve-backing, liquidity and redemption requirements.
It further addresses corporate governance, risk management, internal control systems, technology risk, cybersecurity and operational resilience.
Other areas covered include the safeguarding of reserve assets and customer assets, customer protection, disclosures, complaints management, anti-money laundering, counter-terrorist financing and counter-proliferation financing obligations.
The regulations also prescribe requirements for sanctions screening, transaction monitoring, blockchain analytics, Travel Rule compliance, counterparty Virtual Asset Service Provider due diligence, regulatory reporting, supervisory access and information sharing.
The CBN stated that the framework applies to persons carrying out regulated activities in or from Nigeria, directing such activities at persons in Nigeria, or undertaking activities that may materially affect the country’s payments system, financial system, foreign exchange market or financial stability.
It noted that the regulations may apply irrespective of whether the affected persons maintain a physical presence in Nigeria.
On regulatory coordination, the Bank clarified that the new framework does not displace the statutory mandate of the Securities and Exchange Commission or any other competent authority.
It explained that activities involving security virtual assets, securities, investment contracts or other capital-market products would remain subject to the applicable capital-market regulatory framework.
Where an activity involves both non-security virtual assets and matters falling within the mandate of another regulatory authority, the relevant approvals must be obtained from each competent authority.
The CBN directed all affected institutions, issuers, service providers, operators, promoters and other stakeholders to familiarise themselves with the regulations and ensure full compliance with applicable licensing, authorisation, prudential, operational, reporting, anti-money laundering, customer-protection and technology requirements.
The regulations were issued pursuant to the powers conferred on the CBN by the Central Bank of Nigeria Act, 2007, the Banks and Other Financial Institutions Act, 2020, and other applicable laws.
