{
  "slug": "2026-11-06-nigeria-s-central-bank-sets-stablecoin-licensing-rules-and-bans-algorithmic",
  "title": "Nigeria's central bank sets stablecoin licensing rules and bans algorithmic tokens",
  "date": "2026-11-06T22:45:43.000Z",
  "updated": "2026-11-06T22:45:43.785Z",
  "tags": [
    "markets",
    "business"
  ],
  "source": "https://www.theblock.co/news/regulation/2026-11-06-nigerias-central-bank-introduces-stablecoin-licensing-rules-bans-algorithmic-versions-435867",
  "summary": "The Central Bank of Nigeria's circular, effective November 5, 2026, requires approval for each stablecoin before issuance and gives existing operators 180 days to apply.",
  "kind": "article",
  "body": "# Nigeria's central bank sets stablecoin licensing rules and bans algorithmic tokens\n\n*The Central Bank of Nigeria's circular, effective November 5, 2026, requires approval for each stablecoin before issuance and gives existing operators 180 days to apply.*\n\nThe Central Bank of Nigeria has issued licensing rules for stablecoin issuers and other non-security virtual asset service providers, [The Block reported](https://www.theblock.co/news/regulation/2026-11-06-nigerias-central-bank-introduces-stablecoin-licensing-rules-bans-algorithmic-versions-435867) on November 6, 2026. The circular, \"Regulations for the Operations of Non-Security Virtual Assets in Nigeria,\" took effect on November 5, 2026.\n\nThe rules reach activity conducted in Nigeria or affecting its payments system, financial sector or foreign exchange market, even where a firm has no physical presence in the country.\n\nThe central bank created separate licence categories for stablecoins referenced to the naira and for those referenced to foreign currencies. Issuers must obtain approval for each token before issuing it. The approval covers the token's classification, its reference currency, reserve arrangements, its name, its ticker and the blockchain networks it supports.\n\nForeign-currency stablecoins may be offered to Nigerians only as Class 2 tokens, issued through a company incorporated in Nigeria and holding a Foreign Currency Issuer Licence.\n\nAlgorithmic stablecoins are prohibited. The central bank describes them as tokens that \"rely primarily on market dynamics\" rather than eligible reserve assets to hold their value.\n\nFirms must carry out customer due diligence, sanctions screening and transaction monitoring. They must also meet Travel Rule obligations across custodial wallets, peer-to-peer services and remittance channels.\n\nThe central bank oversees stablecoins and virtual assets used for payments, transfers, remittances, foreign exchange and settlement. The Securities and Exchange Commission retains authority over securities and capital-market activity. Firms whose business falls in both areas need approval from each regulator.\n\nExisting operators have 180 days to apply for the appropriate licence or authorization.",
  "sources": [
    "https://www.theblock.co/news/regulation/2026-11-06-nigerias-central-bank-introduces-stablecoin-licensing-rules-bans-algorithmic-versions-435867"
  ],
  "wordCount": 294,
  "readingTime": 2,
  "canonical": "https://musewire.media/a/2026-11-06-nigeria-s-central-bank-sets-stablecoin-licensing-rules-and-bans-algorithmic",
  "alternates": {
    "md": "https://musewire.media/a/2026-11-06-nigeria-s-central-bank-sets-stablecoin-licensing-rules-and-bans-algorithmic.md",
    "json": "https://musewire.media/a/2026-11-06-nigeria-s-central-bank-sets-stablecoin-licensing-rules-and-bans-algorithmic.json"
  },
  "translations": [
    {
      "lang": "ja",
      "url": "https://agentkeizai.today/a/2026-11-06-nigeria-s-central-bank-sets-stablecoin-licensing-rules-and-bans-algorithmic",
      "name": "エージェント経済"
    },
    {
      "lang": "zh-CN",
      "url": "https://lianzhi.today/a/2026-11-06-nigeria-s-central-bank-sets-stablecoin-licensing-rules-and-bans-algorithmic",
      "name": "链智日报"
    }
  ]
}