FG Launches Coordinated Framework for Crypto Regulation with New Virtual Asset Council

The new framework seeks to eliminate regulatory overlaps by bringing together key government institutions responsible for monetary policy, capital markets, taxation, financial intelligence and law enforcement under a coordinated governance structure. It takes immediate effect.

CBN to chair new regulatory council

Under the Executive Order, the Central Bank of Nigeria (CBN) will chair the newly established Virtual Asset Council, while the Securities and Exchange Commission (SEC) will serve as vice chair.

Membership of the council includes representatives from the Nigeria Revenue Service (NRS), the Nigerian Financial Intelligence Unit (NFIU), the Economic and Financial Crimes Commission (EFCC), the National Information Technology Development Agency (NITDA) and other relevant agencies with responsibilities for financial regulation, cybersecurity and digital innovation.

According to the Presidency, the council will coordinate policy implementation, resolve regulatory overlaps and ensure that agencies adopt a consistent approach to supervising virtual asset activities.

Executive Order targets regulatory coordination

Nigeria’s digital asset market has evolved under multiple regulatory frameworks, with different agencies exercising oversight over aspects of cryptocurrency trading, virtual asset service providers, taxation and anti-money laundering compliance.

The Executive Order seeks to harmonise these responsibilities by establishing a formal coordination mechanism that promotes regulatory consistency while reducing uncertainty for businesses and investors.

Government officials said the framework is designed to encourage innovation without compromising financial stability, consumer protection or national security.

Focus on investor protection and financial integrity

According to the Presidency, the new regulatory framework aims to:

• Harmonise oversight of virtual assets across government agencies.

• Strengthen investor and consumer protection.

• Improve measures to combat fraud, money laundering and illicit financial flows.

• Support responsible innovation within Nigeria’s digital economy.

• Enhance cooperation between financial, capital market and revenue authorities.

The government noted that cryptocurrencies and other digital assets increasingly function as investment products, payment instruments and financial assets, making coordinated regulation necessary to address their cross-sector nature.

Builds on recent digital asset reforms

The Executive Order expands Nigeria’s evolving regulatory framework for digital assets.

In recent years, the SEC has introduced regulatory programmes for Virtual Asset Service Providers (VASPs), while the CBN issued guidelines permitting banks to provide services to licensed VASPs under specified conditions. The Investments and Securities Act also recognises digital assets as securities under Nigerian law, providing a legal basis for their regulation.

The new council is expected to improve coordination between these existing regulatory initiatives rather than replace them.

Implications for Nigeria’s digital economy

Industry stakeholders have long called for clearer regulatory coordination, arguing that overlapping oversight from multiple agencies created uncertainty for fintech firms, cryptocurrency exchanges and investors.

A unified regulatory framework could improve policy consistency, strengthen investor confidence and provide greater certainty for businesses developing blockchain-based financial services in Nigeria. At the same time, stronger coordination is expected to enhance enforcement against fraudulent schemes and improve compliance with anti-money laundering and counter-terrorism financing requirements.

For investors, the Executive Order signals the Federal Government’s intention to support digital innovation while ensuring that virtual asset activities operate within a coordinated regulatory environment.

Outlook

The Presidential Executive Order on Virtual Assets Coordination marks another step in Nigeria’s efforts to establish a comprehensive governance framework for cryptocurrencies and other digital assets. With the CBN-led Virtual Asset Council now responsible for coordinating regulatory oversight, attention will shift to how participating agencies implement harmonised policies and develop operational guidelines that balance innovation, financial stability and investor protection.