Nigeria Adopts Regulated Stablecoin Framework Following Binance Crackdown

Nigeria has signaled a significant regulatory shift in its approach to stablecoin businesses, moving away from a stringent crackdown on cryptocurrency exchanges like Binance. Emomotimi Agama, director-general of the Nigeria Securities and Exchange Commission (SEC), announced the policy pivot during the Nigeria Stablecoin Summit in Lagos on July 24, 2025, hosted by the Africa Stablecoin Network [1]. This marks a strategic recalibration after months of uncertainty following the government’s 2024 actions against Binance, which had been accused of exacerbating the naira’s decline through alleged illicit forex trading and tax evasion [2].

Agama emphasized that Nigeria is now “open for stablecoin business” but under regulatory conditions designed to protect markets and empower residents. The shift aligns with growing demand for dollar-pegged tokens among Nigerians seeking alternatives to the depreciating naira. Stablecoins have become a critical tool for shielding against inflation and currency volatility, particularly for the country’s young, tech-savvy population using them for daily transactions, remittances, and savings [3].

The new stance is underpinned by the recently enacted Investment and Securities Act (ISA 2025), which provides a legal framework for stablecoin oversight and broader digital asset innovation. Agama highlighted the SEC’s inclusion of stablecoin projects in its regulatory sandbox, signaling a collaborative approach to fostering innovation while maintaining compliance. The government also plans to tax digital asset transactions, aiming to generate revenue from a sector that continues to expand despite earlier restrictions.

The Africa Stablecoin Network’s president, Nathaniel Luz, praised the policy shift as a “historic” step for Africa’s digital asset ecosystem. He noted the approval of cNGN, a naira-pegged stablecoin developed by the Africa Stablecoin Consortium, as an early indicator of regulatory flexibility. Agama reiterated that “Africa needs African solutions,” stressing the importance of tailoring regulations to the continent’s unique economic and demographic realities.

This pivot positions Nigeria to compete in the global blockchain-driven finance landscape, as other jurisdictions like the U.S. advance stablecoin legislation. By balancing innovation with oversight, Nigeria aims to harness stablecoins as a tool for cross-border trade and financial inclusion.

Source: [1] [title:Nigeria Courts Stablecoin Firms, Marking a Shift From Binance Crackdown] [url:https://cryptonews.com/news/nigeria-embraces-stablecoins-post-binance-fallout/]

[2] [title:Nigeria Courts Stablecoin Firms, Marking a Shift From Binance Crackdown] [url:https://cryptonews.com/news/nigeria-embraces-stablecoins-post-binance-fallout/]

[3] [title:Nigeria Courts Stablecoin Firms, Marking a Shift From Binance Crackdown] [url:https://cryptonews.com/news/nigeria-embraces-stablecoins-post-binance-fallout/]