Nigeria sets new crypto licensing rules, bans algorithmic stablecoins

Nigeria has banned algorithmic stablecoins and introduced reserve requirements for issuers as it expands central bank oversight of crypto payment services. Nigeria’s central bank has introduced new licensing and reserve requirements for cryptocurrency companies, tightening oversight of stablecoins and digital asset payment services in one of Africa’s largest crypto markets. The Central Bank of Nigeria (CBN) issued the Regulations for the Operations of Non-Security Virtual Assets on Thursday, establishing rules for stablecoin issuers, crypto payment providers, exchanges, custodians and other covered service providers. The regulations took effect immediately, though existing operators have 180 days to apply for licenses or authorizations.