Central Bank of Nigeria issues regulatory rules for non-securities virtual assets, requiring foreign currency stablecoins to be issued by locally licensed entities.
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The Central Bank of Nigeria (CBN) has released the *Regulations on the Operation of Non-Securities Virtual Assets in Nigeria*, establishing a licensing framework for activities including issuance, exchange, custody, and payment of stablecoins, deposit currency tokens, and related virtual asset service providers (VASPs). Securities-type virtual assets remain under the supervision of the Securities and Exchange Commission of Nigeria (SEC). The regulations categorize stablecoins into naira stablecoins and foreign currency stablecoins. Foreign currency stablecoins must be issued by entities registered in Nigeria holding the corresponding issuance license, and can only be provided to local users upon CBN approval—foreign licenses are not acceptable. The minimum paid-in capital for issuers of the two categories is 10 billion naira and 15 billion naira respectively, equivalent to approximately $7.41 million and $11.12 million; other service providers require 1 billion naira, around $740,000. Stablecoins must be fully reserved at a 1:1 ratio, plus an additional 2% over-collateralization. Holders can redeem at face value within the next working day. Issuers are prohibited from paying interest or returns to holders. Algorithmic stablecoins and fiat stablecoins primarily backed by crypto assets are banned. Existing operators must apply for licenses within 180 days of the regulations taking effect, and register with the CBN within 30 days. During the transition period, they can only maintain their current business scale, a rule also applicable to P2P trading platforms.
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