Nigeria Regulates Stablecoins with Capital Requirements

Nigeria has introduced a new regulatory framework for non-security virtual assets, outlining licensing, capital adequacy, reserve management, consumer protection, and reporting standards for entities handling regulated virtual assets.

The regulations classify stablecoins into two categories: Class 1 for naira-referenced stablecoins and Class 2 for stablecoins tied to foreign currencies like the United States dollar.

Issuers of naira-referenced stablecoins must maintain a minimum paid-up capital of N10 billion, while foreign currency-referenced stablecoin issuers are required to hold N15 billion.

Providers of other non-security virtual asset services must also meet a minimum paid-up capital requirement of N1 billion.

The Central Bank of Nigeria (CBN) has mandated that both local and foreign-backed operators serving the Nigerian market comply with these requirements.

Foreign issuers are explicitly barred from claiming exemption from Nigerian incorporation, licensing, or capital requirements.