CBN gives crypto operators 180 days to regularise operations, threatens shutdown

By Onu Okorie

The Central Bank of Nigeria (CBN) has given cryptocurrency businesses and other virtual asset service providers operating in the country 180 days to regularise their operations under a new regulatory framework, warning that operators that fail to obtain the necessary licences within the transition period must suspend their activities.
The directive, contained in the apex bank’s Regulations for the Operations of Non-Security Virtual Assets in Nigeria, signals a major shift in the country’s approach to regulating the digital asset industry, particularly peer-to-peer cryptocurrency platforms, foreign-based operators and businesses facilitating virtual asset transactions for Nigerian customers.
Under the new rules, existing operators must register with the CBN within 30 days of commencement of the regulations, begin supervisory reporting within 60 days and submit complete applications for the appropriate licences or authorisations within 180 calendar days.
The apex bank, however, made clear that the transitional arrangement does not provide a blanket exemption from regulatory oversight, as existing operators are required to comply with anti-money laundering, counter-terrorist financing and counter-proliferation financing requirements from the commencement of the framework.
Failure to submit the required application within the stipulated period will compel the affected business to cease operations until the appropriate regulatory approval is obtained.
The new framework, which took effect following its issuance on November 5, 2026, is particularly significant for cryptocurrency trading platforms, digital wallet providers, stablecoin issuers, payment gateways and businesses facilitating virtual asset transfers.
Foreign cryptocurrency platforms face Nigerian regulatory obligations
In what could significantly reshape the operations of international cryptocurrency companies serving Nigerian customers, the CBN has made clear that foreign incorporation does not automatically exempt an operator from Nigerian regulatory requirements.
The regulations extend to activities conducted in or from Nigeria, directed at Nigerian customers or capable of materially affecting the country’s payment system, financial system, foreign exchange market or financial stability.
This means that foreign-based virtual asset businesses with Nigerian customers may be required to obtain appropriate Nigerian licences or authorisations, depending on the nature of their activities.
The provisions also make clear that offshore issuers cannot claim exemption from applicable Nigerian incorporation, licensing and capital requirements merely because their businesses are domiciled outside the country.
The development places additional compliance responsibilities on international digital asset companies seeking to maintain access to Nigeria’s growing cryptocurrency market.
Peer-to-peer trading faces closer scrutiny
Another important dimension of the regulations is the CBN’s decision to bring platform-facilitated peer-to-peer cryptocurrency transactions under specific approval requirements.
Although the apex bank has not introduced a separate licence category exclusively for P2P services, platforms intending to facilitate such transactions must hold an appropriate licence or authorisation and obtain express approval from the CBN.
The regulator is also introducing stricter requirements for customer identification and transaction monitoring.
Among other things, platforms must establish mechanisms for matching customers’ verified identities, names and Bank Verification Numbers with corresponding payment transactions.
They must also prevent the use of third-party, fictitious, nominee and improperly attributed accounts or wallets.
The CBN may impose transaction limits, customer eligibility requirements, geographical restrictions and conditions governing payment and settlement channels.
Cross-border P2P transactions will equally be subject to applicable foreign exchange regulations, financial integrity requirements and reporting obligations.
The provisions could fundamentally change the compliance responsibilities of cryptocurrency platforms that facilitate direct transactions between buyers and sellers.
Operators face fresh capital requirements
Beyond licensing, the regulations introduce substantial financial requirements for businesses seeking to operate in Nigeria’s virtual asset market.
Stablecoin issuers referencing the naira are required to maintain minimum paid-up capital of ₦10 billion, while issuers of foreign-currency-referenced stablecoins must maintain at least ₦15 billion.
Other virtual asset service providers, including businesses involved in custody, exchange, conversion, transfer, remittance and payment gateway services, are required to maintain minimum paid-up capital of ₦1 billion.
The CBN said these requirements would apply throughout the operations of the licensed institutions, adding that it could prescribe higher capital thresholds depending on the scale, nature and risk profile of the businesses.
For operators already regulated by the Securities and Exchange Commission, the CBN capital requirement will be additional to the capital prescribed under the SEC’s licensing framework.
This means businesses operating across regulatory jurisdictions must satisfy the relevant capital requirements separately.
CBN moves to protect customers’ funds
The new framework also places greater responsibility on cryptocurrency custodians and wallet providers to safeguard customers’ digital assets.
Operators controlling customer assets or private keys are required to maintain proper segregation between customer holdings and their own property.
They are prohibited from lending, pledging, staking, rehypothecating or using customers’ assets for their own purposes.
The regulations further require effective cybersecurity arrangements, secure management of private keys, asset reconciliation and recovery mechanisms.
Stablecoin issuers, meanwhile, must demonstrate adequate reserve backing, establish transparent redemption arrangements and comply with independent audit and liquidity management requirements.
The CBN has also made clear that stablecoins are not bank deposits and are not covered by the Nigeria Deposit Insurance Corporation’s deposit guarantee scheme.
AML compliance becomes central to digital asset operations
The regulations place considerable emphasis on preventing the use of virtual asset platforms for money laundering, terrorism financing and other illicit financial activities.
Operators must implement know-your-customer procedures, customer due diligence, beneficial ownership identification, sanctions screening and continuous transaction monitoring.
They must also comply with the Financial Action Task Force’s Travel Rule requirements, which provide for the collection, transmission and retention of prescribed information relating to the originators and beneficiaries of virtual asset transfers.
The apex bank specifically requires operators to identify suspicious transaction patterns, including the movement of funds through multiple wallets, transaction splitting and the use of third-party accounts to conceal the actual ownership or destination of funds.
These requirements are expected to strengthen the ability of financial regulators and enforcement agencies to trace transactions and identify suspicious activities within the digital asset ecosystem.
Regulatory supervision and enforcement
The CBN has also strengthened its supervisory powers under the new framework.
It can conduct on-site and off-site examinations, inspect operators’ technology infrastructure, demand transaction records and review governance, reserve management and customer protection arrangements.
Where violations or operational weaknesses are identified, the regulator may require corrective measures, impose additional capital or liquidity requirements, restrict business activities, suspend operations or revoke licences.
It may also direct operators to undertake an orderly wind-down of their businesses where necessary.
The regulations equally establish a public register of licensed operators, including details of their approved activities, regulated tokens and applicable licensing conditions.
The framework, however, preserves the Securities and Exchange Commission’s statutory jurisdiction over virtual assets classified as securities, investment contracts and other capital-market products.
The CBN said the new regulations were designed to encourage responsible innovation while safeguarding monetary and financial stability, protecting consumers and strengthening the integrity of Nigeria’s financial system.
With the introduction of the 180-day transition period, the immediate challenge for existing operators will be demonstrating that their business models, financial resources, technology infrastructure and compliance systems meet the new regulatory standards.
For Nigeria’s digital asset industry, the development marks a decisive move towards a system in which continued access to the market will increasingly depend on formal regulatory authorisation, demonstrable financial capacity and compliance with established financial-sector safeguards.