CBN updates guidelines for stablecoins operation.
This was contained in a circular with reference number PSP/DIR/PUB/CIR/001/004, date November […] The post CBN updates guidelines for stablecoins operation appeared first on Vanguard News .
…Sets N15bn capital requirement By Emma Ujah, Abuja Bureau Chief The Central Bank of Nigeria (CBN) has issued guidelines for virtual asset providers in the country, setting minimum capital requirement of N10 billion and N15 billion for Classes 1 and 2 issuers, respectively.
According to the bank, “A Class 1 Licensed Issuer shall maintain paid-up capital of N10 billion Naira or such higher amount as the Bank may prescribe, on entry and at all times thereafter.
Class 2 Licensed Issuer shall maintain minimum paid-up capital of N15 billion or such higher amount as the Bank may prescribe, on entry and at all times thereafter. “Both classes shall comply with the capital deposit and corresponding evidence and supplementary requirements in Section 17. There is no offshore issuer exemption from incorporation, licensing or capital.” The Class 2 stablecoins are digital tokens designed to maintain a stable value against foreign currencies, including the US dollar, while Class 1 refers to issuers of naira-referenced stablecoins. CBN said the emergence of virtual assets, stablecoins, and tokenised payment instruments “presents significant opportunities for innovation in payments, remittances, settlement, and digital commerce,” but that, “their growing adoption also introduces risks relating to financial stability, monetary policy, consumer protection, illicit finance, operational resilience, and foreign exchange management.” It added that the guidelines were issued pursuant to its statutory mandate to promote monetary and financial stability and regulate Nigeria’s payments system.
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