Nigeria’s Central Bank has introduced new rules requiring cryptocurrency peer-to-peer (P2P) platforms to link every digital asset transaction to its corresponding bank payments, tightening oversight of how Nigerians trade cryptocurrencies outside traditional exchanges.
Under the regulations, P2P operators must route naira payments through banking or CBN-approved payment channels, verify traders’ identities, and keep records connecting each payment to the corresponding cryptocurrency transfer.
The requirements are part of the CBN’s new framework for non-security virtual assets, released on Thursday evening, which also requires stablecoin issuers to build the technical ability to freeze wallets, destroy tokens, and block transactions into their smart contracts.
“A provider shall not release or credit a Regulated Token in a P2P transaction unless it has verified that the name and the Bank Verification Number of the account from which the Naira payment was made, or to which it was made, match the verified customer on whose behalf the provider acts,” the CBN said. “The [Central Bank] may prescribe further requirements relating to payment-account verification, permitted customer categories, transaction and customer limits, and other controls.”
The new rules underscore the CBN’s push to tighten its grip on crypto trading, giving the regulator greater visibility into who moves money through P2P platforms. The regulator requires stablecoin issuers to build controls to freeze and block digital assets linked to suspicious activity.
P2P trading allows individuals to buy and sell cryptocurrencies directly with one another, often using bank transfers to settle payments while a trading platform facilitates the exchange. The model has let Nigerians access dollar-backed stablecoins such as USDT and USDC, including for cross-border transactions and foreign exchange (FX) purposes.
The scale of these transactions has grown sharply across Africa. Between 2022 and 2026, stablecoin transfers through P2P channels in Sub-Saharan Africa surged more than sixfold to $14.6 billion, according to blockchain analytics firm Chainalysis.
Nigeria has previously moved to restrict P2P cryptocurrency trading over concerns about its impact on the naira. In May 2024, the Securities and Exchange Commission (SEC) announced plans to ban person-to-person crypto trading involving the local currency; the authorities blamed speculative activity in the cryptocurrency market for the naira’s depreciation.
The CBN’s new framework signals a shift toward regulating P2P transactions through licenced platforms, with stricter requirements to identify traders, trace payments, and monitor the movement of digital assets.
Under the new framework, operators must maintain records connecting each naira payment to its corresponding digital asset transfer, including wallet addresses, payment references, transaction values, and exchange rates.
The CBN will also require P2P providers to identify both parties to a transaction and monitor suspicious activity, including the use of third-party accounts, multiple wallets, and transactions split into smaller amounts to avoid regulatory scrutiny.
P2P transactions involving conversion between the naira and foreign-currency stablecoins will require separate CBN approval. Such transactions must also be settled through, or reported to, an authorised FX dealer and comply with applicable reporting and documentation requirements.
The regulations extend international anti-money-laundering (AML) standards to virtual asset transfers. Under the Financial Action Task Force’s (FATF) Travel Rule, regulated operators handling qualifying transfers of $1,000 or €1,000 and above, or their naira equivalent, must obtain information identifying the sender and recipient.
P2P platforms must also collect and retain sender and recipient information when both parties are their customers, regardless of the transaction amount. Transfers involving other virtual asset service providers (VASPs) are subject to the applicable Travel Rule information-sharing requirements.
“A provider of a P2P Service shall ensure that every customer using the service is subject to applicable customer identification, verification, customer due diligence and ongoing monitoring requirements before being permitted to transact,” the CBN said.
“The provider shall maintain sufficient information to identify each customer and counterparty participating in a P2P transaction and to attribute each transaction to the relevant customer accounts, wallets, payment accounts and settlement arrangements.”
Beyond transaction monitoring, the CBN requires licenced stablecoin issuers to embed enforcement capabilities directly into the software governing their tokens.
These include the ability to freeze wallet addresses or token balances following a lawful court order, regulatory directive, or instruction from the Nigerian Financial Intelligence Unit (NFIU). Issuers must also be able to permanently destroy tokens held in frozen or confiscated addresses when legally authorised.
Smart contracts must support deny-listing, which blocks transactions involving wallets linked to suspected money laundering, terrorist financing, or sanctions violations, as well as a mechanism to suspend token transfers temporarily during major security incidents.
The powers will be subject to documented procedures, audit trails, access controls and legal authorisation requirements.
The framework also requires P2P operators to obtain explicit CBN approval before offering regulated services. The P2P provisions exclude private transfers between individuals, without an intermediary facilitating the transaction.
The measures deepen the CBN’s oversight of cryptocurrency payments, linking transactions on digital asset networks to identifiable customers, regulated financial institutions, and records that authorities can examine.
They also create a new compliance burden for P2P platforms and stablecoin issuers seeking to serve Nigerian customers, as the regulator moves to bring more of the country’s digital asset activity under formal supervision.