Nigeria’s central bank is taking a more structured step toward regulating the country’s fast-growing virtual asset ecosystem, selecting a group of fintech and crypto players for a targeted compliance pilot.
The Central Bank of Nigeria (CBN) has enlisted Flutterwave, Paystack, and Juicyway, alongside KuCoin, KoinKoin, and cNGN, for an initiative aimed at strengthening anti-money laundering (AML), counter-terrorism financing (CFT), and counter-proliferation financing (CPF) frameworks.
At its core, the programme is designed to give regulators deeper visibility into how digital asset businesses operate, while helping participating firms align with global compliance standards. According to the apex bank, the pilot will build a “structured understanding” of risks, business models, and operational practices within the sector.
Participants will undergo detailed supervisory engagements involving both the CBN and, where required, the Nigerian Financial Intelligence Unit. These reviews will examine critical areas such as customer onboarding, governance systems, transaction monitoring, and cross-border flows key pressure points in financial crime prevention.
Importantly, the CBN clarified that participation does not translate to regulatory approval or licensing, underscoring the programme’s exploratory nature.
The initiative reflects a notable shift in Nigeria’s regulatory posture toward digital assets. While earlier policies restricted crypto-related banking activities, adoption has continued to surge, driven by demand for alternative financial channels. In parallel, the Securities and Exchange Commission has introduced frameworks signaling a more accommodating stance.
By aligning the pilot with global benchmarks such as the Financial Action Task Force’s recommendations on emerging technologies and transaction transparency, the CBN appears to be positioning itself for more coordinated and pragmatic oversight.
As digital payments and virtual assets gain traction, the success of this pilot could shape the next phase of Nigeria’s regulatory approach one that seeks to balance innovation with financial system integrity and global compliance expectations.
