A ₦1 billion capital requirement is now sitting between Nigerian crypto firms and the full range of services they want to offer. Under new regulations released last Thursday, cryptocurrency companies licensed by the Securities and Exchange Commission will need separate Central Bank of Nigeria approval and at least ₦1 billion ($744,000) in additional capital to offer stablecoin payment, remittance, and custody services.
The framework draws a clear line between two regulatory worlds. The CBN takes charge of stablecoins used for payments, transfers, foreign exchange conversion, and settlement. The SEC keeps its authority over crypto trading, investments, and digital assets classified as securities. Crucially, firms cannot count the same capital toward both regulators' requirements, so compliance costs go up for anyone operating across both spaces.
For crypto exchanges and fintechs that have built businesses combining digital asset trading with cross-border payments, the practical implications are real. An SEC licence to facilitate cryptocurrency trading will not automatically cover stablecoin-powered remittance services. Companies will need to apply to the CBN for a separate authorisation that spells out exactly what activities they can undertake. As the CBN's framework states directly: "A licence, registration or approval granted by the SEC shall not, by itself, authorise the holder to provide services" covered by the CBN's rules.
This regulatory split comes nearly four months after President Bola Tinubu established a Virtual Asset Council to coordinate oversight of Nigeria's cryptocurrency industry. Whether that council will smooth the dual-licensing process, or add another layer to it, is the question the industry is now watching closely.
Originally published by TechCabal.