Nigeria central bank requires stablecoin licenses and bans algorithmic versions

Nigeria's central bank has issued new virtual asset regulations requiring stablecoin issuers and other service providers to obtain local licenses, while banning algorithmic stablecoins outright. The licensing requirement raises compliance costs and barriers for stablecoin operators in one of Africa's largest crypto markets, and the algorithmic ban removes a category of tokens from the market entirely. Traders should watch for reduced stablecoin liquidity and possible delistings on Nigerian exchanges as providers weigh whether to pursue licenses.