The Central Bank of Nigeria (CBN) has launched a pilot program for Virtual Asset Service Providers (VASPs) as part of its ongoing efforts to regulate digital assets in the country.
According to a press release issued by the CBN’s Communications Directorate, the VASP Pilot Program will run for six to nine months. It aims to test the operations of selected VASPs in a controlled environment while working closely with commercial banks.
The program is open to VASPs that hold a valid license from the Securities and Exchange Commission (SEC). Participants will be required to partner with banks to facilitate transactions under direct supervision from the CBN.
The main objectives include assessing the effectiveness of anti-money laundering and counter-terrorism financing (AML/CFT) measures, evaluating consumer protection mechanisms, testing the integration of virtual assets with existing payment systems, and identifying potential risks to the financial system.
Return To Crypto
This initiative builds on previous steps taken by the CBN. In 2021, the bank had imposed restrictions on banks dealing with cryptocurrency activities. Those restrictions were later eased in 2023 when guidelines were issued allowing banks to provide services to properly licensed VASPs. The current pilot represents a further move toward structured oversight and evidence-based regulation.
Nigeria has seen significant activity in the virtual asset space, driven by high youth population, remittances, and the use of digital assets for payments and value storage. The pilot is intended to generate data that will help regulators make informed decisions about broader frameworks for the sector.
Companies Select for the Pilot
Selected participants will operate under specific conditions, including enhanced reporting requirements and real-time monitoring. The CBN emphasized that the program will focus on safety, stability, and compliance.
Participation in the Pilot is strictly supervisory and does not confer any regulatory
status, approval, licensing right, or authorisation on participating entities.
The following entities are participating in this initial supervisory phase:
- cNGN
- Flutterwave
- Juicyway
- KoinKoin
- KuCoin
- Paystack
This pilot forms part of the CBN’s wider work on digital finance, financial inclusion, and the development of secure payment systems in Nigeria. Outcomes from the program are expected to shape future policies on virtual assets and their role in the national economy.
