The Central Bank of Nigeria (CBN) has introduced new regulations requiring locally licensed issuers of foreign-currency-pegged stablecoins to maintain a minimum paid-up capital of about $11.16 million. These rules, effective from November 5, apply to virtual assets used for payments, settlement, and foreign exchange, classifying foreign-currency stablecoins as Class 2 tokens. The regulation also sets different capital requirements for naira-pegged tokens and other virtual asset services, prohibits algorithmic stablecoins, and mandates verification of user identity before token transactions. This move aims to strengthen oversight of non-security virtual assets while securities remain regulated by the Securities and Exchange Commission (SEC).
