Nigeria Tightens Crypto Rules: Dollar Stablecoins Face Local Licensing as P2P Platforms Must Verify BVN Matches

New CBN regulations require foreign-currency-backed stablecoins serving Nigerians to operate through locally incorporated, licensed issuers and impose stricter identity checks and foreign-exchange controls on platform-facilitated P2P transactions.

Nigeria's cryptocurrency regulatory landscape is entering a stricter phase as the Central Bank of Nigeria (CBN) introduces new requirements for dollar-backed stablecoins and peer-to-peer (P2P) crypto trading platforms.

The regulations, titled Regulations for the Operations of Non-Security Virtual Assets in Nigeria, took effect on November 5, 2026. They establish licensing, operational, identity verification and foreign-exchange requirements for stablecoin issuers and virtual asset service providers operating in or targeting the Nigerian market.

Among the most significant changes, foreign-currency-backed stablecoins can only be offered to Nigerians through a Nigerian-incorporated company holding a valid CBN Foreign Currency Issuer Licence.

The rules also require P2P platforms to verify that the name and Bank Verification Number (BVN) associated with a naira payment account match the identity of the customer conducting the transaction.

Dollar Stablecoins Must Operate Through Nigerian-Licensed Issuers

Under the new framework, the CBN classifies stablecoins into two categories:

• Class 1: Stablecoins whose value is pegged to the Nigerian naira.

• Class 2: Stablecoins pegged to foreign currencies, including the US dollar.

Under Section 6.5 and Section 11.1, foreign-currency-backed stablecoins must be issued through a Nigerian-incorporated entity with a valid Class 2 licence and specific approval for the token.

This means international stablecoin issuers cannot rely solely on foreign regulatory licences or partnerships with local intermediaries to make their tokens available to Nigerian customers.

The regulations also establish a ₦15 billion minimum paid-up capital requirement for Class 2 stablecoin issuers, compared with ₦10 billion for issuers of naira-referenced stablecoins.

However, the requirement does not mean that every dollar-stablecoin reserve must be physically held in Nigeria. The CBN permits Class 2 reserve assets to be held in approved foreign banks and eligible foreign-currency securities, while requiring separate operational liquidity and approved local arrangements to support Nigerian redemption and payment obligations.

P2P Platforms Must Match Customer Names With BVNs

Another major change concerns how Nigerians buy and sell cryptocurrencies through P2P platforms.

Under Section 10.3.3, platforms must verify that the name and BVN associated with the bank account used to make or receive a naira payment match the verified customer before releasing or crediting the regulated token.

The requirement is designed to reduce the use of third-party accounts, fraudulent identities, mule accounts and other payment arrangements that make it difficult to identify the actual participants in crypto transactions.

Platforms are also prohibited from knowingly permitting third-party, nominee, fictitious or improperly attributed accounts and wallets to conceal the identity of customers or the source and destination of funds.

For everyday traders, this could mean that using a friend's bank account to pay for a crypto purchase or receiving naira payments through another person's account may prevent a platform from completing the transaction.

The requirements apply to platform-facilitated P2P services, including platforms that match buyers and sellers, display orders, provide escrow, facilitate payments or support settlement. They should not automatically be interpreted as a blanket prohibition on every private, unmediated transfer between individuals.

READ MORE: What Is a Stablecoin, and Why Are Nigerians Using Them?

CBN Brings P2P Dollar-Stablecoin Trades Under FX Controls

The new regulations also connect P2P crypto transactions more directly to Nigeria's foreign-exchange framework.

Under Section 10.6, approval to operate a P2P service does not automatically give a platform permission to conduct foreign-exchange business or create an alternative FX market.

Platforms cannot facilitate transactions converting naira into Class 2 stablecoins or other foreign-currency value without express CBN approval.

Where approval is granted, the naira side of the transaction must be settled through, or reported to, an authorised dealer designated by the CBN. Transactions must also comply with prescribed foreign-exchange monitoring, documentation and reporting requirements.

The rules further prohibit platforms and traders from splitting, routing or structuring transactions to avoid regulatory limits, reporting obligations or foreign-exchange controls.

This is particularly significant for Nigeria's dollar-stablecoin market, where P2P trading has become an important channel for exchanging naira and digital dollar assets.

Existing Crypto Operators Have 180 Days to Apply

The CBN has provided a transition period for businesses already operating within the framework.

Under Section 54.1, existing operators must apply for the appropriate licence or authorisation within 180 calendar days of the regulations taking effect.

However, the transition period comes with additional requirements:

• Existing operators must register with the CBN within 30 days.

• Anti-money laundering and counter-terrorism financing requirements apply from commencement.

• Supervisory reporting must begin within 60 days, or an earlier period prescribed by the regulator.

• Operators must submit complete licence or authorisation applications within the 180-day period.

Existing dollar-stablecoin arrangements also require express interim permission to continue during assessment. The transition period does not automatically exempt foreign issuers from the local incorporation and licensing requirements.

What the New Rules Mean for Nigerian Crypto Users

For Nigerian crypto users, the immediate changes are likely to involve stricter identity verification, closer monitoring of transactions and fewer opportunities to use third-party bank accounts for P2P payments.

Stablecoin issuers and crypto platforms will also face higher compliance costs, licensing requirements and closer regulatory supervision.

The CBN says the framework is intended to strengthen financial-system integrity, improve consumer protection, support responsible innovation and give regulators greater visibility into virtual-asset transactions.

However, the impact on market access, transaction costs and the availability of foreign-backed stablecoins will depend on how licensing and implementation progress.

READ MORE: What Is P2P Crypto Trading, and How Does It Work Around Banking Restrictions?

For Nigerian crypto traders, the message is clear: the way platforms verify identities and facilitate naira-to-stablecoin transactions is changing significantly.

Do you think the new rules will make Nigeria's crypto market safer, or could they make P2P trading more difficult for everyday users?