Nigeria’s central bank introduced a licensing framework for cryptocurrency businesses that requires full reserve backing for stablecoins and prohibits tokens that rely primarily on algorithms to maintain their value, according to Cointelegraph’s report published on Nov. 6, 2026.
The Central Bank of Nigeria (CBN) issued the Regulations for the Operations of Non-Security Virtual Assets on Thursday. The rules took effect immediately, with existing operators given 180 days to apply for licenses or authorizations. They cover stablecoin issuers, crypto payment providers, exchanges, custodians and other covered service providers.
The CBN said the framework was intended to support responsible innovation while protecting consumers and financial stability. It followed President Bola Tinubu’s July executive order seeking to coordinate crypto oversight among Nigerian authorities without changing their existing powers.
Stablecoin reserves and capital requirements
Under the regulations, stablecoin issuers must fully back their tokens with reserve assets and maintain an additional buffer equal to at least 2% of their value. At least 40% of reserves must be held in cash or qualifying highly liquid assets.
Minimum paid-up capital requirements are:
- 10 billion naira ($7.4 million) for naira-backed stablecoin issuers.
- 15 billion naira ($11.1 million) for foreign currency-backed stablecoin issuers.
- 1 billion naira ($742,000) for companies providing payment-related crypto services, including exchange and custody services.
The rules prohibit stablecoins that depend primarily on algorithms rather than eligible reserves to maintain their value. Tokens without enforceable redemption rights are also prohibited.
Background: banking restrictions, Binance and crypto taxes
Nigeria had previously limited banking access for crypto exchanges and sought to restrict peer-to-peer trading using local currency.
Binance, the world’s largest cryptocurrency exchange by trading volume, discontinued its Nigerian naira services in March 2024 amid government scrutiny of crypto trading and allegations of currency manipulation. Nigerian authorities also detained Binance executive Tigran Gambaryan for nearly eight months before dropping money laundering charges against him in October 2024.
In August 2026, Nigeria’s revenue agency introduced crypto tax collection rules for digital asset platforms and peer-to-peer marketplaces.
Original source: Cointelegraph, published Nov. 6, 2026, at 21:57:14 UTC+08:00.