CBN Brings Stablecoin Issuers Under Direct Supervision,…
By Tobi Opeyemi Amure
AI summary of the source article
The Central Bank of Nigeria introduced licensing rules for stablecoin issuers on November 5 and prohibited algorithmic stablecoins. Issuers must incorporate locally, obtain a license, and meet specific capital and reserve requirements.
Why it matters
"Rising stablecoin adoption, growing crypto transaction volumes and concerns about monetary sovereignty have pushed Nigeria to bring virtual asset activity more firmly under regulatory oversight."
Key facts
- The Central Bank of Nigeria introduced licensing rules for non-security virtual asset operators and banned algorithmic stablecoins on November 5.
- Issuers of naira-pegged stablecoins must hold at least ₦10 billion ($7.44 million) in paid-up capital, while foreign currency-pegged issuers require ₦15 billion ($11.16 million).
- Naira-pegged stablecoin issuers must hold at least 20% of their total reserve pool in a reserve deposit account at the central bank.
Source excerpt · FinanceFeeds
The Central Bank of Nigeria (CBN) introduced licensing rules for stablecoin issuers on Nov. 5 and prohibited algorithmic stablecoins, placing virtual asset activity that touches Nigeria under direct central bank supervision. The Regulations for the Operations of Non-Security Virtual Assets in Nigeria apply to activities conducted in or from Nigeria, directed at Nigerian customers, or capable of ma…