Crypto firms face capital rules as CBN and SEC divide oversight

Cryptocurrency companies licenced by the Securities and Exchange Commission need separate central bank approval and at least ₦1 billion in additional capital to offer certain stablecoin payment, remittance, and custody services. The new regulations were released Thursday evening.

The Central Bank of Nigeria will oversee stablecoins used as payment instruments, transfers, foreign exchange conversion, and settlement. The SEC retains authority over crypto trading, investments, and digital assets classified as securities. The framework draws a clearer regulatory boundary for crypto businesses that combine trading with payments, requiring companies operating across both markets to secure authorisation from each regulator. It also raises compliance costs, prohibiting firms from counting the same capital toward their CBN and SEC requirements.

Regulatory Requirements and Capital Rules

The division follows years of overlapping regulatory mandates and comes nearly four months after President Bola Tinubu established a Virtual Asset Council to coordinate oversight of the cryptocurrency industry. Under the rules, an SEC licence that permits a company to trade or hold cryptocurrencies will not automatically authorise it to use those assets to process payments or remittances. Companies seeking to offer such services must apply to the CBN for an additional authorisation specifying the activities they can undertake.

The SEC has not yet issued a full operating licence to any cryptocurrency company, with 14 companies currently participating in its Accelerated Regulatory Incubation Programme. These firms include crypto exchanges Busha and Quidax as well as digital investment platforms such as GetEquity, and they are operating under approvals in principle as they work toward full registration. The SEC has also raised the minimum capital requirement for digital asset exchanges from ₦500 million to ₦2 billion. New applicants must meet the higher threshold, while existing operators have until June 30, 2027, to comply.

Operations and Cooperation

The CBN’s ₦1 billion capital requirement will apply to the additional services digital asset firms may provide, even where a company already meets the SEC’s minimum capital threshold. The central bank may also impose higher capital or liquidity requirements based on the scale and risks of an operator’s business. SEC-regulated crypto exchanges seeking to offer digital asset-based payment services may need at least ₦3 billion in regulatory capital for both functions. However, not every cryptocurrency transaction will require dual approval, as wallets and custody services used solely for trading, brokerage, or investment purposes will remain under the SEC.

The regulations also establish a pathway for both regulators to cooperate, including information sharing, joint examinations, and coordinated licencing assessments. The CBN may rely on the SEC’s existing checks on a company’s governance, management, and anti-money-laundering controls when reviewing applications for additional authorisation. The new arrangement gives crypto firms a clearer distinction between trading and payments, but also places additional regulatory and financial obligations on companies whose services extend across both activities.