Central Bank of Nigeria Selects Six Entities for New Virtual Asset Pilot

Six VASPs Tapped for New Supervisory Pilot

The Central Bank of Nigeria has officially launched an anti-money laundering and counter-financing of coercion supervisory aviator program. The caller aviator is designed to align Nigeria with the Financial Action Task Force (FATF) Recommendations 15 and 16—specifically the question rule, which requires virtual plus work providers to stock originator and beneficiary accusation for transactions.

Only a fewer years ago, the Nigerian crypto scenery was defined by friction. In February 2021, the CBN efficaciously barred commercialized banks from servicing crypto exchanges. However, pursuing the lifting of that prohibition successful December 2023 and the consequent enactment of the Investments and Securities Act of 2025, the absorption has shifted from exclusion to integration.

According to a press release, the CBN has handpicked a prime radical of fintech and crypto entities to enactment successful this archetypal phase. These see the Africa Stablecoin Consortium, Flutterwave, Juicyway, Koinkoin, Kucoin and Paystack. However, the CBN was cautious to enactment that information “does not confer immoderate regulatory status, approval, oregon licensing right.” Instead, it is simply a controlled and structured situation for the slope to survey concern models and operational risks.

Under the pilot, participating VASPs are obliged to taxable monthly information connected AML/CFT show and acquisition audits of lawsuit onboarding, sanctions screening and transaction monitoring. They indispensable besides show credible plans to way cross-border integer plus flows.

“The Pilot is designed to make a structured knowing of AML/CFT/CPF risks, concern models, and operational practices crossed participating entities,” the CBN stated. “It besides supports VASPs successful strengthening their AML/CFT/CPF frameworks successful enactment with emerging supervisory expectations.”

The slope emphasized that each information collected volition beryllium protected nether the Nigeria Data Protection Act of 2023.

By bringing exchanges similar Kucoin and outgo giants similar Flutterwave into a ceremonial supervisory loop, the CBN aims to weed retired atrocious actors portion ensuring that Nigeria—one of the world’s astir progressive crypto markets—remains a unchangeable node successful the planetary fiscal system.

The CBN has already scheduled consequent phases of the pilot, though it confirmed these are not unfastened to outer expressions of involvement astatine this time.

FAQ ❓

• What did the CBN launch? Nigeria’s cardinal slope introduced an AML/CFT supervisory aviator program.
• Which FATF rules apply? The aviator aligns with FATF Recommendations 15 and 16, including the Travel Rule.
• Who is participating? Selected fintechs and crypto firms similar Flutterwave, Kucoin, Paystack, and others joined.
• What is the goal? The programme tests compliance, information reporting, and hazard controls to fortify Nigeria’s crypto oversight.