Nigeria's CBN Sets New Stablecoin Rules with $11M Capital Requirement

Nigeria's Central Bank has introduced detailed regulations for stablecoin issuers, requiring up to $11 million in capital.

New Regulations for Stablecoins

The Central Bank of Nigeria (CBN) has released comprehensive regulations for the operations of non-security virtual assets, effective November 5, 2026. These regulations require stablecoin issuers to be incorporated in Nigeria, maintain a local office, and hold significant capital reserves. For Naira-referenced stablecoins, the capital requirement is ₦10 billion ($7.4 million), while for foreign-currency stablecoins, it is ₦15 billion ($11 million).

Licensing and Capital Requirements

The new rules establish a tiered licensing system with hefty capital requirements. Class 1 issuers, offering Naira stablecoins, must have ₦10 billion in paid-up capital. Class 2 issuers, targeting foreign-currency stablecoins like USDT and USDC, need ₦15 billion. Additionally, virtual asset service providers must hold at least ₦1 billion in capital. These requirements are designed to protect against issuer insolvency and ensure liquidity for redemption requests.

Impact on the Industry

The regulations mark a shift from prohibition to licensing, aiming to legitimize the industry while imposing stringent financial barriers. This could limit the number of players able to enter the market, particularly affecting local Naira stablecoin developers who may struggle to meet the capital requirements.

Sources

• launchbaseafrica.com: Nigeria’s New Stablecoin Rules: $11M, a Local Office, and a Prayer for Startups Without Bank Balance Sheets
• technext24.com: Inside CBN’s new virtual asset rules mandating ₦10b and ₦15b capital for Naira and foreign stablecoin issuers
• thecondia.com: CBN’s new crypto rules put a ₦15bn price tag on issuing dollar stablecoins in Nigeria

Prepared with AI from the sources below and our own data, reviewed by the editors before publishing.