Nigeria sets new crypto licensing rules, bans algorithmic stablecoins
Summary
Nigeria’s central bank has introduced immediate licensing and reserve rules for stablecoin issuers, crypto payment providers, exchanges and custodians. Existing operators have 180 days to apply. Stablecoins must be fully backed, hold a 2% additional buffer and keep at least 40% of reserves in cash or qualifying liquid assets. Minimum capital requirements range from 1 billion naira for payment-related services to 10 billion naira for naira-backed issuers and 15 billion naira for foreign currency-backed issuers. Algorithmic stablecoins without eligible reserves and tokens lacking enforceable redemption rights are prohibited. The rules are part of Nigeria’s expanding oversight of digital assets.
