Central Bank of Nigeria, Abuja branch

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Nigeria's central bank requires local licenses for stablecoin issuers

Nigeria's central bank now requires stablecoin issuers serving Nigerians to be licensed locally and bans algorithmic versions. The rules aim at compliance and consumer protection.

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Photo: Livingstone Imonitie, CC BY-SA 4.0, via Wikimedia Commons

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The Central Bank of Nigeria put new stablecoin rules into effect on Nov. 5. A stablecoin is a crypto token designed to hold a steady value. Issuers serving Nigerians must now incorporate in the country.

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Token issuers need a minimum capital base of 10 billion to 15 billion naira. On top of that, they must keep reserves worth 2% more than the tokens they have issued.

In numbers

  • 10-15 billion nairaMinimum issuer capital
  • 2%Extra reserve requirement

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The rules apply to offshore issuers as well, which must license locally. The bank also bans algorithmic stablecoins, which try to hold their value through computer code rather than assets held in reserve.

The licensing mandate stresses regulatory compliance and consumer protection. It could reshape the digital currency landscape in Nigeria.

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Nigeria
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Crypto

This article is not investment advice. It was written by our automated newsroom from published reports and official statements, using only the facts in them, and not read by a person before it was published. Report a mistake
Photo: Livingstone Imonitie, CC BY-SA 4.0, via Wikimedia Commons

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