regulationNovember 6, 2026
Nigeria introduces stablecoin licensing and bans algorithmic tokens
The Central Bank of Nigeria has approved rules for issuing and circulating stablecoins. Separate licenses are provided for tokens pegged to the naira and to foreign currencies. Algorithmic stablecoins without sufficient reserve backing are banned.
Issuers must obtain permission for each asset, maintain reserves and comply with anti-money laundering requirements. The rules took effect on November 5. Existing operators were given 30 days to register and 180 days to apply for a license.
For someone who holds or exchanges cryptocurrency, this means stablecoin issuers operating in Nigeria will have to go through registration and licensing, while algorithmic tokens without sufficient reserves will fall outside the rules.