The Central Bank of Nigeria (CBN) has initiated a pilot supervision programme targeting virtual asset service providers (VASPs), selecting key players such as Flutterwave, Paystack, KuCoin, cNGN, Juicyway, and KoinKoin for the first phase.
The apex bank said the initiative is part of broader efforts to tighten oversight on anti-money laundering (AML), counter-terrorism financing (CFT), and counter-proliferation financing (CPF) risks within Nigeria’s financial system.
In a statement, the CBN explained that the programme aligns with existing laws, including the Money Laundering (Prevention and Prohibition) Act 2022, the CBN Act, and the Banks and Other Financial Institutions Act (BOFIA) 2020.
According to the regulator, the pilot is a risk-based supervisory initiative designed to deepen its understanding of virtual asset operations and strengthen compliance standards among operators.
“This pilot does not alter or replace the existing regulatory framework governing virtual assets in Nigeria,” the CBN noted, stressing that participation does not amount to licensing or regulatory approval.
Under the programme, participating firms are required to submit monthly key performance indicators on AML/CFT/CPF compliance, engage regularly with the CBN and the Nigeria Financial Intelligence Unit, and undergo rigorous assessments covering governance structures, customer onboarding processes, sanctions screening, transaction monitoring, and cross-border operations.
The regulator added that firms must also demonstrate readiness to comply with the Financial Action Task Force (FATF) recommendations—particularly the “Travel Rule,” which mandates transparency in virtual asset transactions.
The CBN further disclosed that the initiative will be implemented in phases, with subsequent rounds already fully scheduled and closed to new entrants.
It assured that all data collected during the pilot will be treated as confidential, in line with the Nigeria Data Protection Act 2023 and internal supervisory standards.
The move, the apex bank said, underscores its commitment to safeguarding financial system stability, enhancing market integrity, and ensuring that emerging technologies like cryptocurrencies operate within a secure and transparent regulatory environment.