The Central Bank of Nigeria has commenced a pilot supervision programme targeting Virtual Asset Service Providers as part of efforts to strengthen oversight of cryptocurrency related activities in the country. In a directive dated March 31, the apex bank said the initiative focuses on Anti Money Laundering, Counter Financing of Terrorism, and Counter Proliferation Financing compliance, adding that it forms part of its risk based supervisory framework aimed at safeguarding financial system stability.
The bank clarified that the pilot does not replace or override existing regulations governing virtual assets, nor does it alter the roles of other regulatory authorities. It, however, identified a number of major fintech and crypto linked firms, including cNGN, Flutterwave, Juicyway, KoinKoin, KuCoin, and Paystack, as participants in the initial phase of the programme. The move comes as Nigeria continues to rank among the most active cryptocurrency markets globally, with recent data showing significant transaction volumes within the sector.
According to the apex bank, the pilot is designed to deepen its understanding of the risks, business models, and operational structures of virtual asset operators. Participating firms will be required to submit regular compliance reports, engage directly with regulators, and undergo assessments covering governance, customer onboarding processes, transaction monitoring, sanctions compliance, and cross border transactions.
The programme will also ensure alignment with global standards set by the Financial Action Task Force, particularly requirements around information sharing and transaction transparency. The inclusion of the Nigeria Financial Intelligence Unit in the process highlights the government’s focus on enforcement and accountability. The CBN stressed that participation in the pilot does not grant any licensing or regulatory approval, but serves strictly as a supervisory engagement to strengthen compliance within the sector.