CBN mandates N15bn capital for dollar-backed stablecoin issuers in Nigeria
CBN mandates N15 billion minimum paid-up capital for companies issuing foreign currency-backed stablecoins like USDT and USDC in Nigeria, effective immediately under new 169-page regulations issued Thursday. The framework covers licensing, reserve backing, liquidity, cybersecurity, and AML compliance including Travel Rule requirements for transaction monitoring and blockchain analytics.
Operators must safeguard reserve assets and customer funds, meet capital adequacy standards, and establish orderly wind-down arrangements. The regulation applies to any entity directing virtual asset activities at Nigerians or materially affecting Nigeria's payment system, forex market, or broader economy. CBN clarified it doesn't override SEC's authority over virtual assets classified as securities—operators needing both approvals must obtain each separately.
This follows President Tinubu's July 2026 executive order on virtual assets, signaling a coordinated regulatory approach. Unlicensed operators face enforcement; users should verify platforms hold CBN authorization before transacting. The N15bn threshold (about $9.5 million at current rates) likely consolidates the market around well-capitalized players.
Will you verify your stablecoin provider's CBN license status, or does this regulation push you toward traditional banking channels for dollar exposure?