Central Bank of Nigeria Selects Six Entities for New Virtual Asset Pilot – Africa Bitcoin News

Six VASPs Tapped for New Supervisory Pilot

The Central Bank of Nigeria has officially launched an anti-money laundering and counter-financing of terrorism supervisory pilot program. The new pilot is designed to align Nigeria with the Financial Action Task Force (FATF) Recommendations 15 and 16—specifically the travel rule, which requires virtual asset service providers to share originator and beneficiary information for transactions.

Only a few years ago, the Nigerian crypto landscape was defined by friction. In February 2021, the CBN effectively barred commercial banks from servicing crypto exchanges. However, following the lifting of that ban in December 2023 and the subsequent enactment of the Investments and Securities Act of 2025, the focus has shifted from exclusion to integration.

According to a press release, the CBN has handpicked a select group of fintech and crypto entities to participate in this initial phase. These include the Africa Stablecoin Consortium, Flutterwave, Juicyway, Koinkoin, Kucoin and Paystack. However, the CBN was careful to note that participation “does not confer any regulatory status, approval, or licensing right.” Instead, it is a controlled and structured environment for the bank to study business models and operational risks.

Under the pilot, participating VASPs are obliged to submit monthly data on AML/CFT performance and undergo audits of customer onboarding, sanctions screening and transaction monitoring. They must also demonstrate credible plans to track cross-border digital asset flows.

“The Pilot is designed to develop a structured understanding of AML/CFT/CPF risks, business models, and operational practices across participating entities,” the CBN stated. “It also supports VASPs in strengthening their AML/CFT/CPF frameworks in line with emerging supervisory expectations.”

The bank emphasized that all data collected will be protected under the Nigeria Data Protection Act of 2023.

By bringing exchanges like Kucoin and payment giants like Flutterwave into a formal supervisory loop, the CBN aims to weed out bad actors while ensuring that Nigeria—one of the world’s most active crypto markets—remains a stable node in the global financial system.

The CBN has already scheduled subsequent phases of the pilot, though it confirmed these are not open to external expressions of interest at this time.

FAQ ❓

• What did the CBN launch? Nigeria’s central bank introduced an AML/CFT supervisory pilot program.
• Which FATF rules apply? The pilot aligns with FATF Recommendations 15 and 16, including the Travel Rule.
• Who is participating? Selected fintechs and crypto firms like Flutterwave, Kucoin, Paystack, and others joined.
• What is the goal? The program tests compliance, data reporting, and risk controls to strengthen Nigeria’s crypto oversight.