CBN Issues New Regulatory Guidelines for Stablecoins, Sets N15bn Capital Requirement for Foreign-Pegged Issuers

The Central Bank of Nigeria (CBN) has released a comprehensive regulatory framework for virtual asset service providers, establishing stringent capital requirements and operational parameters for stablecoin issuers operating within the country.
​According to a circular (reference number PSP/DIR/PUB/CIR/001/004) dated November 5, 2026, and signed by the Director of Payments Systems Policy, Mr. Musa Jimoh, the apex bank has categorized licensed issuers into two distinct tiers:
​Class 1 (Naira-Referenced Stablecoins): Issuers are required to maintain a minimum paid-up capital of N10 billion.
​Class 2 (Foreign Currency-Referenced Stablecoins): Issuers—which include tokens pegged to foreign currencies such as the US dollar—must maintain a minimum paid-up capital of N15 billion.
​The CBN emphasized that these capital thresholds must be maintained upon entry and at all times thereafter, stressing that no offshore issuer exemptions will be granted regarding incorporation, licensing, or capitalization.
​Balancing Innovation and Systemic Risk
​The apex bank noted that while virtual assets, stablecoins, and tokenized payment instruments offer significant opportunities for enhancing remittances, digital commerce, and settlement efficiencies, their rapid adoption introduces formidable risks to financial stability, monetary policy efficacy, foreign exchange management, and consumer protection.
​Issued pursuant to its statutory mandate to regulate the payments system, the new framework aims to establish a risk-based structure governing the issuance, distribution, custody, transfer, and redemption of Non-Security Virtual Assets and Deposit Money Tokens (DMTs).
​Key regulatory objectives outlined in the guidelines include:
​Preserving the effectiveness of CBN monetary policy instruments and capital flow management.
​Safeguarding holders against issuer insolvency, reserve mismanagement, and redemption denials.
​Enforcing robust governance, prudential standards, and operational resilience across all Virtual Asset Service Providers (VASPs).
​Strict Controls on P2P Trading and AML/CFT Compliance
​To mitigate vulnerabilities related to illicit finance, money laundering, and terrorism financing (AML/CFT/CPF), the framework places heavy compliance burdens on service providers.
​VASPs are mandated to implement strict board-approved criteria for identifying commercial participants engaged in Peer-to-Peer (P2P) trading based on transaction volumes, frequencies, and counterparty networks. Providers must subject such users to enhanced due diligence, impose transaction caps, and report suspicious activities directly to the central bank.
​The guidelines cover Naira-referenced stablecoins, foreign currency-referenced stablecoins, Deposit Money Tokens, and any other designated digital tokens falling under the bank’s purview over national payments, foreign exchange, and financial stability.