Nigeria's President Bola Tinubu has signed an executive order on virtual assets, potentially marking a significant shift in the regulation of cryptocurrencies, including stablecoins, in the West African country.
According to the State House, the executive order, which is to take effect immediately, will "harmonise the regulation of virtual assets, strengthen cooperation among the nation's financial, revenue and capital market agencies, protect citizens from fraud, and safeguard the integrity of the financial system while enabling responsible innovation."
The executive order outlines the establishment of a "Virtual Asset Council" - chaired by the Central Bank of Nigeria (CBN) and also including the Nigeria Revenue Service (NRS), Securities Exchange Commission (SEC), Nigerian Financial Intelligence Unit (NFIU), and the Office of the National Security Advisor (ONSA).
The Council will work "to develop a harmonised legal and institutional framework that aligns the sector with Nigeria's national security, economic and social objectives." The executive order also states that the CBN will establish a "sandbox" for virtual assets, providing a controlled environment in which operators can test virtual asset products and services under the oversight of regulators, which the government says "will help ensure that innovations that reach Nigerans have been properly examined and supervised."
Originally published by African Business.