Tinubu signs Virtual Assets Executive Order, creates CBN-led council to harmonise crypto regulation

President Bola Tinubu has signed the Presidential Executive Order on Virtual Assets Coordination, 2026, establishing a new framework to coordinate the regulation of virtual assets across government agencies as Nigeria seeks to curb fraud while supporting innovation in the digital economy.

The Executive Order, which takes immediate effect, creates a Virtual Asset Council chaired by the Central Bank of Nigeria (CBN) to harmonise oversight of cryptocurrencies, tokenised assets, stablecoins, and other digital assets without creating a new regulator.

The development was disclosed in a statement issued on Friday by the President’s Special Adviser on Information and Strategy, Bayo Onanuga.

According to the Presidency, the Executive Order responds to the growing complexity of virtual assets, which increasingly cut across the traditional boundaries of currencies, securities, commodities, and payment systems.

What they are saying

In the statement, the Presidency stated that the fragmented regulatory environment has left gaps that have exposed Nigeria to money laundering, terrorism financing, cybersecurity and data privacy risks, fraud, and revenue losses.

The government said some unregistered operators have exploited these regulatory gaps to defraud unsuspecting Nigerians, resulting in significant financial losses.

• “The Order is designed to close these gaps through supervisory coordination, without introducing new layers of regulation or displacing the mandates of existing agencies,” the statement read.

Under the new framework, the Virtual Asset Council will be chaired by the CBN, with the Nigeria Revenue Service (NRS) and the Securities and Exchange Commission (SEC) serving as vice chairs.

Other members include the Nigerian Financial Intelligence Unit (NFIU) and the Office of the National Security Adviser (ONSA).

The Council will provide policy direction, improve cooperation among participating agencies, and work with the Attorney General of the Federation to develop a harmonised legal and institutional framework for the sector.

The Executive Order also establishes a Virtual Asset Office, which will serve as the Council’s operational arm. The office will be domiciled at the CBN and will coordinate information sharing, applications, and reporting among the participating agencies through a shared supervisory technology platform.

More insights

The Presidency stressed that the Executive Order does not create a new regulator or transfer statutory powers from existing agencies.

Instead, each institution will continue to exercise its existing mandate while working within a coordinated framework.

The move is significant because Nigeria’s approach to virtual assets has increasingly involved multiple regulators with overlapping interests and, at times, differing policy priorities.

While the Securities and Exchange Commission (SEC) has taken an increasingly proactive stance by licensing digital asset firms and expanding its regulatory sandbox under the Investments and Securities Act, the Central Bank of Nigeria (CBN) has generally adopted a more cautious approach, citing concerns around financial stability, monetary policy, anti-money laundering controls and consumer protection.

The inclusion of the Nigeria Revenue Service (NRS) as vice chair also underscores the government’s growing focus on the tax implications of the digital asset industry. As virtual asset adoption expands, authorities are increasingly looking at the sector as a potential source of tax revenue alongside broader efforts to formalise Nigeria’s digital economy.

By placing the CBN, SEC and NRS within a single coordinating framework, the Federal Government appears to be seeking a more unified regulatory approach that balances innovation, financial stability and revenue generation.

Under the arrangement, registration of virtual asset businesses will depend on the nature of the service being offered.

Activities classified as securities will continue to be regulated by the SEC, while payment, settlement, custody and other services involving non-security virtual assets will fall under the CBN.

CBN to launch regulatory sandbox

As part of the new framework, the CBN will establish a regulatory sandbox that will allow eligible firms to test virtual asset products, blockchain solutions, and related services under regulatory supervision before they are introduced to the wider market.

• “The sandbox will provide a controlled environment in which eligible operators can test and operate virtual asset products, services, and blockchain-based solutions under close supervision, enabling the participating agencies to assess the implications for monetary sovereignty, financial stability, market integrity, consumer protection, financial inclusion, and revenue administration before products reach the wider market,” the statement read.

According to the Presidency, the sandbox will enable regulators to evaluate the implications of emerging products for financial stability, monetary sovereignty, consumer protection, financial inclusion, market integrity, and revenue administration.

The CBN is expected to announce further details of the sandbox.

Meanwhile, the Nigeria Revenue Service will issue a tax policy for virtual assets to clarify how existing tax laws apply to the sector, improve compliance, and ensure that digital asset businesses contribute to government revenue.

The Federal Government also disclosed that it is finalising a comprehensive Virtual Assets White Paper that will outline Nigeria’s long-term policy direction for the sector.

What you should know

The signing of the Executive Order on Virtual Assets comes at a time when the SEC is intensifying efforts to regulate the crypto market.

Earlier this month, Nairametrics reported that the SEC had admitted seven new companies into its Accelerated Regulatory Incubation Programme (ARIP), expanding the number of digital asset firms operating under its regulatory sandbox.

The seven companies include Bitbarter Technologies Limited, Luno Fintech Nigeria Limited, GetEquity Limited, Koinkoin Global Network Limited, Wrapped CBDC Ltd, Trovotech Ltd, and Blockvault Custodian Ltd.

The latest approval follows the SEC’s admission of Quidax and Busha into its regulatory framework in August 2024.