Nigeria Sets New Stablecoin Licensing Rules and Capital Requirements

TL;DR: Nigeria’s central bank issued a new framework on November 5 for non-security virtual assets, with separate stablecoin licences tied to naira and foreign-currency tokens. The rules introduce reserve, capital and local-presence obligations and ban certain algorithmic designs. This is a payments-regulation story, not a blanket legalisation of every crypto activity. Nigeria is moving from broad policy debates over digital assets toward detailed rules for the businesses that issue and move them. In a November 5 circular and accompanying regulations, the Central Bank of Nigeria set out a licensing framework covering stablecoins, payment services, custody, transfers and remittances involving non-security virtual assets. The framework is relevant well beyond Nigeria because international stablecoin businesses cannot assume that having a foreign issuer or a smart contract operating outside the country puts them outside its reach. Two stablecoin classes, with different obligations The central bank differentiates between naira-referenced stablecoins and those referencing foreign currencies. Class 1 covers naira-linked issuers; Class 2 addresses foreign-currency-backed tokens. Reporting...