Fintech operators are asking the Central Bank of Nigeria to clearly specify which cryptocurrency-related activities licensed institutions may undertake, citing regulatory uncertainty that continues to slow innovation and limit investment in the sector.
The concern is captured in the CBN’s newly released Fintech Report, which draws from industry surveys and closed-door engagements with operators across the country.
While interest in digital assets is growing, many firms say the lack of precise guidance remains a major obstacle to responsible participation in the crypto market.
The News Chronicle gathered that industry players believe clearer rules would unlock legitimate use cases such as cross-border payments, digital asset custody, and tokenisation, while helping regulators better manage risk.
Stakeholders favour a framework that focuses on specific activities rather than broad restrictions, allowing regulators to separate compliant businesses from high-risk operations.
According to the report, fintechs also raised concerns about consumer protection, urging clearer advisories on fraud prevention and price volatility.
Participants warned that treating all crypto activity as illegal could push innovation offshore, even as Nigeria continues to shoulder reputational damage from scams largely originating outside the country.
The report cites global examples, such as Singapore and the European Union, where digital asset rules define permissible activities and apply proportionate supervision. Fintechs believe similar principles could help Nigeria balance innovation with financial stability.
Although the CBN allowed banks to open accounts for virtual asset service providers in late 2023, operators say detailed enforcement guidelines are still needed.
They also stress that closer coordination between the CBN and the SEC is critical for effective crypto regulation.
