Tinubu approves new framework to coordinate cryptocurrency regulation

President Bola Tinubu has signed an Executive Order establishing a unified framework for the regulation and supervision of virtual assets in Nigeria, marking a major step in the government’s effort to strengthen oversight of the rapidly growing digital asset sector.

The Presidential Executive Order on Virtual Assets Coordination, 2026, was signed on Friday and takes immediate effect, according to a statement issued by the President’s Special Adviser on Information and Strategy, Bayo Onanuga.

The Presidency said the new order is designed to address regulatory fragmentation in the virtual assets ecosystem and improve coordination among government agencies responsible for supervising the sector.

According to the statement, the increasing convergence of digital assets with traditional financial instruments has created regulatory overlaps and gaps that have exposed the country to risks such as money laundering, terrorism financing, cybercrime, data breaches, fraud and revenue leakages.

The government noted that weak coordination among regulators had enabled some unregistered operators to exploit loopholes and defraud investors.

To tackle the challenge, the Executive Order establishes a Virtual Asset Council, which will serve as the central coordinating body for virtual asset regulation in Nigeria.

The council will be chaired by the Central Bank of Nigeria (CBN), while the Nigeria Revenue Service (NRS) and the Securities and Exchange Commission (SEC) will serve as vice-chairpersons.

Other members include the Nigerian Financial Intelligence Unit (NFIU) and the Office of the National Security Adviser (ONSA).

The council is expected to provide policy direction, improve collaboration among regulatory agencies and work with the Office of the Attorney-General of the Federation to develop a harmonised legal and institutional framework for the sector.

The order also creates a Virtual Asset Office, which will function as the council’s operational arm and coordinate information sharing, applications and reporting among participating agencies.

The office will be headquartered at the CBN and supported by a technology-driven supervisory platform designed to facilitate regulatory cooperation while allowing each institution to retain control over its data.

The Presidency clarified that the new arrangement does not establish a new regulator or remove statutory powers from existing agencies.

Instead, it is intended to improve coordination among regulators while preserving their independence and legal mandates.

Under the framework, virtual asset activities classified as securities will continue to be regulated and registered by the SEC, while payment, settlement, custody and related services involving non-security digital assets will fall under the oversight of the CBN.

In cases where regulatory responsibility is unclear, the council will determine the appropriate agency to exercise oversight.

The government also announced plans for a regulatory sandbox that will allow approved operators to test virtual asset products and blockchain-based innovations under close supervision.

The sandbox, to be administered by the CBN, is expected to provide regulators with insights into the potential impact of emerging technologies on financial stability, market integrity, consumer protection, financial inclusion and government revenue before wider deployment.

In addition, the Nigeria Revenue Service is expected to introduce a dedicated tax policy for the virtual assets industry to provide clarity for operators and improve tax compliance across the sector.

The Presidency further disclosed that work is nearing completion on a comprehensive Virtual Assets White Paper that will outline Nigeria’s long-term strategy for digital assets and provide guidance for stakeholders.

The newly established council has been directed to develop a Harmonised Implementation Framework within 30 days to facilitate the swift execution of the Executive Order.

Nigeria remains one of the world’s largest cryptocurrency markets by transaction volume, with digital asset adoption continuing to expand despite previous regulatory restrictions.

In 2021, the CBN barred banks from facilitating cryptocurrency transactions, a policy that was later relaxed in 2023 when the apex bank introduced guidelines for virtual asset service providers.

The SEC has also intensified efforts in recent years to regulate digital asset exchanges and bring cryptocurrency-related activities under formal oversight.