CBN Moves to Regulate Crypto in Nigeria, Framework of Plans

• The Central Bank of Nigeria is planning a regulatory framework for the adoption of cryptocurrencies in Nigeria
• The bank said in a document that it would consider developing the stablecoin framework.
• But analysts have criticized the move after the widespread failure of e-Naira in the country.

The Central Bank of Nigeria has stated that it will issue a regulatory policy framework for the execution of cryptocurrencies in Nigeria.

The main bank revealed this in a report on the Nigerian Payments System 2025.

Stablecoin adoption is coming

The CBN had banned cryptocurrency trading in Nigeria and prevented banks from conducting cryptocurrency-related transactions by commercial banks.

According to the document, the CBN would consider the development of a regulatory framework for its possible implementation.

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The CBN intends to develop the framework for trading stablecoins in Nigeria, which are always pegged to currencies around the world.

The bank stated that it will continue to monitor Initial Coin Offerings and will work with the Securities and Exchange Commission to develop a regulatory framework in the event of crypto adoption of an ICO-based investment solution.

Stablecoins are cryptocurrencies whose value is tied to a country’s currency or to a financial instrument that offers an alternative to high-volatility, commodity, or financial instruments, according to Investopedia.

CBN maintains that the crypto transaction is illegal

The Central Bank of Nigeria has banned crypto-related transactions in Nigeria on the grounds that it is used for money laundering and terrorist financing.

The Punch reports that CBN Director of Corporate Communications Osita Nwanisobi stated that a ban on crypto transactions would not negatively affect the fintech space.

He said:

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“The use of cryptocurrencies in Nigeria is in direct contravention of existing law.

“It is also important to note that there is a critical difference between a central bank-issued digital currency and cryptocurrencies.

“As the name implies, while central banks can issue digital currencies, cryptocurrencies are issued by unknown and unregulated entities.

“The question one may need to ask, therefore, is why any entity would disguise its transactions if they were legal.”

Experts have criticized CBN’s planned adoption of the stablecoin considering the failure of its CBDC, the e-Naira.

According to them, the implementation of the policy would not give the desired result and would not have a significant impact on the economy.

Nigerian Crypto Investors Show Billions Of Dollars Credited To Their Accounts By Mistake

legit.ng reported that several Nigerian cryptocurrency investors have shown massive amounts of money amounting to billions of dollars credited to their wallets in a global failure that turned many momentary billionaires overnight.

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After Legit.ng reported a story of Chinedu MacGordon waking up to a bloated cryptocurrency account, many took to the comments section of Legit.ng’s Facebook pages to share screenshots of what they found in their wallets. Coinbase.

Many reported a problem withdrawing money found in their accounts. Some users saw billions of dollars in their accounts.

Source: Legit.ng