Central Bank of Nigeria has selected six firms, including Flutterwave, Paystack, and KuCoin, for a pilot supervisory programme aimed at tightening oversight of Nigeria’s fast-growing cryptocurrency sector.
The initiative, announced in a statement dated March 31, is part of efforts to strengthen anti-money laundering (AML), counter-terrorism financing, and counter-proliferation financing frameworks within the financial system.
Other firms selected for the first phase include cNGN, Juicyway, and KoinKoin, reflecting a mix of fintech, payment infrastructure providers, and crypto-native platforms operating in Nigeria’s digital asset ecosystem.
According to the CBN, the pilot forms part of its risk-based supervisory programme designed to improve monitoring of virtual asset activities and enhance financial system stability.
“The CBN has commenced an AML/CFT/CPF supervision pilot involving a select group of virtual asset service providers identified as relevant for supervisory engagement,” the bank said.
The regulator clarified that participation in the programme does not amount to licensing or regulatory approval but is strictly for supervisory engagement.
Under the pilot, participating companies will submit monthly compliance reports, undergo detailed reviews of governance and transaction monitoring systems, and engage directly with regulators, including the Nigeria Financial Intelligence Unit.
The programme will also push firms to align with global standards, particularly the Financial Action Task Force (FATF) recommendations on transparency and the “travel rule,” which requires the sharing of transaction data across platforms.
The move signals a shift in Nigeria’s approach to cryptocurrency regulation—from earlier restrictions to more structured supervision and risk management—as authorities seek to balance innovation with financial integrity.
Nigeria remains one of the world’s most active crypto markets, with billions of dollars in transactions recorded annually, prompting regulators to strengthen oversight and compliance across the sector.
