Nigeria’s crypto P2P trades must link naira to bank payments

By Olivia Hart

Every naira payment in a cryptocurrency peer-to-peer (P2P) trade in Nigeria must link to the matching digital-asset transfer under the Central Bank of Nigeria’s new framework. The CBN introduced the requirement through its Regulations for the Operations of Non-Security Virtual Assets in Nigeria, released Thursday evening.

Under the CBN framework, P2P providers must route naira through banking or CBN-approved payment channels, verify traders and retain connecting records. Chainalysis reported that stablecoin transfers through P2P channels in Sub-Saharan Africa rose more than sixfold to $14.6 billion between 2022 and 2026.

The $14.6 billion figure spans the region rather than Nigeria alone. It signals the scale of the activity the CBN seeks to supervise, but cannot show how much Nigerian volume the rules will cover.

What changes for traders and platforms?

The CBN framework blocks providers from releasing or crediting a regulated token until payment-account details match the verified customer. The rule reads:

“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 CBN may prescribe further rules on payment-account verification, permitted customer categories, transaction limits, customer limits and other controls. The framework therefore establishes a baseline rather than a fixed ceiling on platform obligations.

The CBN requires providers to retain records that connect each naira payment with its digital-asset transfer. The records must include:

• Wallet addresses.
• Payment references.
• Transaction values.
• Exchange rates.

The CBN requires providers to identify both counterparties to each trade. They must also monitor suspicious patterns, including third-party accounts, multiple wallets and transactions split into smaller amounts to avoid regulatory scrutiny.

Transactions converting naira into foreign-currency stablecoins require separate CBN approval. Providers must settle or report them through an authorized FX dealer and comply with applicable reporting and documentation rules.

Licensed platforms need explicit CBN approval before offering regulated P2P services. The provisions exclude private transfers between individuals when no intermediary facilitates the trade.

The CBN release provides no implementation deadline, approved-provider list or record-retention period. That leaves operators without a stated transition period as the market moves toward formal supervision.

In plain terms, each P2P bank payment must become an identifiable, auditable link to a customer and crypto transfer.

What do the anti-money-laundering rules require?\n

The CBN extends international anti-money-laundering 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 sender and recipient information.

The CBN requires platforms to collect and retain sender and recipient information when both parties are customers, regardless of transaction value. FATF information-sharing requirements also govern transfers involving other virtual asset service providers.

The CBN also said:

“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 CBN requires providers to maintain enough information to identify every customer and counterparty. They must attribute each transaction to the relevant customer accounts, wallets, payment accounts and settlement arrangements.

That extends identity checks beyond the provider’s own customer base. The framework does not explain how platforms will handle cases where one party uses another provider.

Nor does the framework set a timetable for FATF information sharing. The practical cost therefore remains unspecified.

In plain terms, regulated P2P transfers must carry identifying information from sender to recipient.

What powers do stablecoin issuers gain?\n

Licensed stablecoin issuers must build enforcement controls directly into the software governing their tokens. The CBN requires those issuers to have the technical ability to freeze wallets, destroy tokens and block transactions into their smart contracts.

Its detailed control set covers four areas:

• Freezing: Wallet addresses or token balances after a lawful court order, regulatory directive or instruction from the Nigerian Financial Intelligence Unit (NFIU).
• Destruction: Permanent removal of tokens held in frozen or confiscated addresses when legally authorized.
• Denylisting: Wallets linked to suspected money laundering, terrorist financing or sanctions violations, with their transactions blocked.
• Suspension: Temporary halts to token transfers during major security incidents.

The CBN subjects these powers to documented procedures, audit trails, access controls and legal authorization. It does not set technical standards for those controls or explain how authorities will review denials or suspensions.

In plain terms, regulators gain software-level levers over token balances and transfers, but the release leaves key technical safeguards unspecified.

Why does this matter now?

Nigeria previously moved to restrict the channel. In May 2024, the Securities and Exchange Commission announced plans to ban person-to-person cryptocurrency trades involving the naira, blaming speculative crypto activity for the currency’s depreciation.

The CBN’s framework takes a different route. It licenses P2P operators, links naira settlement to wallet activity and gives the regulator greater visibility into who moves money through those platforms.

The CBN describes P2P trading as a direct exchange, often using bank transfers while a platform facilitates the trade. The model has given Nigerians access to dollar-backed stablecoins such as USDT and USDC, including for cross-border transfers and foreign-exchange purposes.

The rules also link digital-asset transfers to identifiable customers, regulated payment channels and records authorities can examine. This creates a heavier compliance burden for P2P platforms and stablecoin issuers seeking Nigerian customers, while placing more digital-asset activity under formal supervision.

The immediate test is whether the CBN names licensed providers and sets enforceable deadlines. Without those steps, the CBN’s goal of greater visibility into Nigerian crypto flows will remain incomplete.