Every naira moving through a crypto peer-to-peer deal in Nigeria now has to leave a paper trail. The Central Bank of Nigeria released a new framework on Thursday evening requiring P2P platforms to link every digital asset transaction to a corresponding bank payment, verify traders' identities, and match Bank Verification Numbers to confirmed customer profiles before any funds are released.
The CBN was direct in its directive. "A provider shall not release or credit a Regulated Token in a P2P transaction unless it has verified that the name and the Bank Verification Number of the account from which the Naira payment was made, or to which it was made, match the verified customer on whose behalf the provider acts," the regulator stated. It also reserved the right to impose further limits on permitted customer categories and transaction amounts.
Stablecoin issuers are not left out of the new requirements. Under the same framework, they must build the technical ability to freeze wallets, destroy tokens, and block transactions directly into their smart contracts, giving authorities a direct line to halt activity linked to suspicious behavior.
The timing makes sense when you look at the numbers. Between 2022 and 2026, stablecoin transfers through P2P channels across Sub-Saharan Africa surged more than sixfold to $14.6 billion, according to blockchain analytics firm Chainalysis. Nigeria sits at the center of that growth, with many traders using dollar-backed stablecoins like USDT and USDC for cross-border payments and foreign exchange.
This is not Nigeria's first attempt to rein in P2P crypto activity. In May 2024, the Securities and Exchange Commission announced plans to ban person-to-person crypto trading in naira, citing the market's role in the currency's depreciation. The new CBN framework signals that the conversation has moved from outright bans to tighter, more structured control, and how platforms adapt will be worth watching closely.
Originally published by TechCabal.