Nigeria Introduces New Virtual Assets Regulation Framework to Strengthen Crypto Oversight

 Nigeria has taken another major step toward regulating its fast-growing cryptocurrency and digital asset industry after President Bola Ahmed Tinubu signed the Presidential Executive Order on Virtual Assets Coordination, 2026. The new framework is designed to create a unified regulatory system for virtual assets, improve cooperation among government agencies, and strengthen investor protection while supporting innovation in the country's digital economy.

The Executive Order establishes a Virtual Asset Council (VAC), which will coordinate policies and regulatory activities involving cryptocurrencies and other virtual assets. The council will be chaired by the Central Bank of Nigeria (CBN) and will bring together key government institutions responsible for financial regulation, taxation, anti-money laundering, and capital market oversight. According to the Federal Government, this coordinated approach is intended to eliminate regulatory overlaps, improve transparency, and ensure that Nigeria's digital asset ecosystem operates under a consistent set of rules.

The new framework also reinforces the role of the Securities and Exchange Commission (SEC) as the primary regulator for digital assets classified as securities. Crypto exchanges, Virtual Asset Service Providers (VASPs), custodians, and other digital asset businesses are expected to comply with licensing requirements, corporate governance standards, anti-money laundering regulations, and know-your-customer (KYC) obligations established under the SEC's digital asset rules.

Nigeria has gradually shifted from restricting cryptocurrency activities to building a regulated environment for the industry. In recent years, authorities introduced guidelines allowing banks to provide services to licensed Virtual Asset Service Providers, while the Investment and Securities Act 2025 formally recognized certain digital assets within Nigeria's capital market framework. The latest Executive Order builds on those reforms by improving coordination between regulators and creating a more structured oversight system.

Government officials say the new regulatory framework aims to encourage responsible innovation while protecting consumers from fraud, financial crimes, and market abuse. By bringing regulators together under a single coordinating body, Nigeria hopes to create a safer environment for investors, attract legitimate blockchain businesses, and position itself as one of Africa's leading digital asset markets.

The announcement comes as lawmakers also continue considering the proposed Virtual Asset Service Providers Regulation Bill, 2026, which recently advanced in the Senate. If eventually passed into law, the legislation would further strengthen the legal framework governing cryptocurrency businesses and digital asset operations across the country.