Nigeria’s crypto regulation has entered a new phase after President Bola Tinubu signed an Executive Order establishing a coordinated framework for virtual assets. The new policy affects cryptocurrency regulation in Nigeria, including Bitcoin, USDT, blockchain companies and other digital asset services.
According to information released by the Presidency, the Executive Order aims to improve cooperation among regulators, strengthen investor protection and tackle financial crimes linked to virtual assets. FirstNigerian understands that the order does not create a new regulator. Instead, it aligns the responsibilities of existing institutions while allowing each agency to retain its statutory powers.
The latest crypto regulation in Nigeria also introduces new measures covering taxation, regulatory oversight, blockchain innovation and investor protection.
Five Changes Nigeria’s Crypto Regulation Will Introduce
The Executive Order outlines several measures that could reshape how cryptocurrency and virtual assets operate in Nigeria.
Nigeria To Introduce Crypto Tax Policy
The Nigeria Revenue Service will develop a tax policy for cryptocurrency and virtual assets.
The policy will explain how existing tax laws apply to Bitcoin, USDT, digital asset trading and other cryptocurrency transactions in Nigeria. In addition, officials say the framework aims to improve voluntary tax compliance while ensuring digital asset activities contribute to government revenue.
CBN To Launch Regulatory Sandbox For Blockchain And Crypto Products
The Central Bank of Nigeria will establish a regulatory sandbox for blockchain companies and virtual asset service providers.
As a result, eligible businesses will be able to test cryptocurrency products, blockchain technologies and digital financial services under regulatory supervision before launching them to the public.
Furthermore, regulators will assess how emerging technologies affect financial stability, consumer protection, financial inclusion and monetary policy.
New Virtual Asset Council To Coordinate Crypto Regulation In Nigeria
The Executive Order establishes a Virtual Asset Council to coordinate cryptocurrency regulation across government agencies.
The Central Bank of Nigeria will chair the council, while the Nigeria Revenue Service and the Securities and Exchange Commission will serve as vice-chairmen. Other members include the Nigerian Financial Intelligence Unit and the Office of the National Security Adviser.
Where regulatory responsibilities overlap, the council will determine which agency has jurisdiction over specific virtual asset services.
What Tinubu’s Crypto Executive Order Means For Bitcoin, USDT And Digital Assets
The Presidency says the Executive Order seeks to close regulatory gaps that have allowed fraudulent operators to exploit investors in Nigeria’s growing cryptocurrency market.
However, the order does not transfer statutory powers between regulators.
Instead, the Securities and Exchange Commission will continue regulating virtual assets classified as securities. Meanwhile, the Central Bank of Nigeria will supervise payment systems, custody services, settlements and other non-security virtual asset activities.
New Virtual Asset Office To Improve Regulatory Coordination
The Executive Order also creates a Virtual Asset Office within the Central Bank of Nigeria.
The office will coordinate information sharing, process regulatory applications and support collaboration among participating agencies through an integrated supervisory technology platform.
Officials say the arrangement is intended to improve oversight of Nigeria’s expanding digital asset ecosystem.
Harmonised Crypto Regulation Framework Expected Within 30 Days
The newly established Virtual Asset Council has been directed to prepare a Harmonised Implementation Framework within 30 days.
The framework will guide participating agencies on implementing Nigeria’s new crypto regulation. At the same time, the Federal Government is preparing a comprehensive Virtual Assets White Paper that will outline the country’s long-term digital asset policy and implementation priorities.
The Executive Order takes immediate effect as Nigeria moves to establish a more coordinated regulatory framework for cryptocurrency, blockchain technology and virtual assets.
Frequently Asked Questions About Nigeria Crypto Regulation
Is Cryptocurrency Legal In Nigeria?
Nigeria’s new crypto framework provides regulatory coordination for virtual assets. Existing agencies will continue supervising different areas of digital asset activity.
Will Nigerians Pay Tax On Cryptocurrency?
The Nigeria Revenue Service is expected to issue a virtual asset tax policy explaining how existing tax laws apply to cryptocurrency activities.
Will CBN Regulate Bitcoin And USDT In Nigeria?
The Central Bank of Nigeria will oversee payment, settlement, custody and related services involving certain virtual assets.
