CBN opens second regulatory sandbox, creates dedicated track for crypto and stablecoin firms
By Aboki Forex —
The Central Bank of Nigeria has opened applications for the second cohort of its Regulatory Sandbox Programme, with a dedicated track for virtual asset service providers. Applications will run from August 12, 2026 to August 31, 2026.
The CBN announced the new cohort in a statement signed by Hakama Sidi Ali, Acting Director, Corporate Communications and Investor Relations Department. The programme introduces two tracks: the Virtual Asset Service Provider (VASP) Track and the Data Enabled Financial Services Track.
Two tracks for digital finance innovation
The VASP Track will support innovations involving virtual assets, stablecoins, payments, settlement, custody, wallets and related financial infrastructure that require supervised live testing. The Data Enabled Financial Services Track, which excludes VASPs, will focus on innovations using secure digital infrastructure and permission-based data sharing to improve financial inclusion, payments, credit, risk management, operational efficiency and consumer outcomes.
The CBN said the second cohort reflects its commitment to a transparent, proportionate and risk-based regulatory environment that promotes innovation while safeguarding monetary and financial stability. It added that insights from supervised testing would deepen its understanding of emerging technologies and inform future regulatory frameworks.
Musa Jimoh, Director of the Payments System Policy Department at the CBN, said financial innovation is transforming how individuals and businesses access financial services.
“The introduction of dedicated tracks for Virtual Asset Service Providers and data-enabled financial services reflects the evolving nature of financial innovation and our commitment to ensuring that Nigeria’s regulatory environment continues to support responsible, transparent innovation that is aligned with the long-term development of our financial system,” Jimoh said.
How applications will be assessed
The CBN said applications will be assessed based on the level of innovation, readiness for controlled live testing, potential consumer or market benefit, governance arrangements, risk management capability and the suitability of the proposed testing plan. Successful participants will undertake supervised testing within clearly defined parameters agreed with the CBN, including safeguards covering consumer protection, operational resilience, cybersecurity and regulatory reporting.
The apex bank stressed that participation in the Regulatory Sandbox does not constitute a licence, authorisation or approval to operate outside the approved testing parameters. Interested applicants can apply through the CBN Regulatory Sandbox Portal at https://sandbox.cbn.gov.ng before the deadline.
Recent crypto regulatory moves
The announcement adds to a series of actions targeting the crypto industry. Last month, President Bola Tinubu signed the Presidential Executive Order on Virtual Assets Coordination, 2026, establishing a framework to coordinate the regulation of cryptocurrencies, stablecoins, tokenised assets and other digital assets across government agencies.
Last week, the Nigeria Revenue Service released new Guidelines on the Taxation of Virtual Assets targeting companies, individual taxpayers, VASPs, peer-to-peer marketplace operators and other participants in the digital asset ecosystem. Before that, the Securities and Exchange Commission intensified efforts to grant approval in principle to crypto exchanges under its Accelerated Regulatory Incubation Programme. In the latest development, seven virtual asset companies received approval in principle, bringing the total to nine.
The CBN’s Regulatory Sandbox was first launched in 2022, with applications for the first cohort opening in December that year. It became operational on January 25, 2023, giving fintech innovators a controlled environment to test products under regulatory supervision.
For Nigerian businesses and crypto operators, the second sandbox cohort signals a clearer path to test digital asset products under CBN oversight, a shift towards formal integration rather than outright restriction.