Tinubu Signs Executive Order Regulating Nigeria's Crypto Market

Nigeria's President Tinubu has signed the Presidential Executive Order on Virtual Assets Coordination, which aims to regulate the country's crypto market. The order creates a new Virtual Asset Council, chaired by the Central Bank of Nigeria (CBN), with representatives from the Securities and Exchange Commission (SEC), Nigeria Revenue Service, Nigerian Financial Intelligence Unit, and Office of the National Security Adviser.

The council will coordinate the regulation of virtual assets, including those classified as securities or payment systems. The CBN will regulate payment, settlement, and custody-type virtual assets, while the SEC will handle tokenized assets that behave like shares or investment contracts. If there's a dispute over which agency regulates an asset, the Council will decide.

The order also sets up a regulatory sandbox for eligible operators to test new virtual asset products and blockchain technology under supervision. A dedicated tax policy for the virtual assets sector is being developed to clarify how existing tax law applies to crypto gains. The government claims that the fragmented regulatory system has left gaps for unregistered operators to defraud unsuspecting Nigerians.

The order does not ban peer-to-peer trading, but platforms that refuse to register may face shutdowns and users may lose their funds. Crypto businesses are advised to formalise or adapt to the new regulations.