Nigeria Rolls Out Red Carpet for Stablecoin Startups—One Year After Binance Clampdown
Africa's crypto giant shifts stance—from crackdowns to courting stablecoin builders. Regulatory whiplash or calculated pivot?
Subheader: From Frying Pan to Fire?
Twelve months after freezing Binance out, Abuja now dangles incentives for dollar-pegged crypto projects. The same regulators who seized trading accounts now tweet #StablecoinRevolution—with zero irony.
Subheader: The Compliance Tightrope
New applicants must thread the needle: full KYC protocols paired with promises of ‘monetary stability.’ Because nothing says stability like algorithmic tokens backed by offshore shell companies.
Closing hook: Watch this space—where yesterday’s crypto villains become tomorrow’s ‘financial partners.’ Just don’t ask about last year’s confiscated Bitcoin reserves.
A crypto revival
In a separate paper published earlier in February, Agama described stablecoins as a “critical element of the cryptocurrency ecosystem,” while warning that their benefits come with “significant national security concerns.”
Those statements and fresh posturing from the country’s regulatory chief come just over a year after Nigeria detained Binance executive Tigran Gambaryan and launched a sweeping crackdown on crypto operations, including Coinbase and other exchanges.
Gambaryan, a U.S. citizen and former IRS investigator, was arrested in February 2024 during a compliance visit to Abuja. A month later, he reportedly escaped. On the second day of his trial in May 2024, he collapsed in court.
U.S. lawmakers later urged the government to help free Gambaryan, with some blaming former president Joe Biden’s perceived distance from the crypto industry at the time.
After eight grueling months, Gambaryan was released, with the case discontinued due to his failing health conditions. Last month, he resigned from Binance.
Not overnight
Agama’s remarks have sparked fresh debate over whether Nigeria can rebuild trust with global crypto firms and position itself as a stablecoin hub.
“While Nigeria has publicly banned crypto-related businesses following the Binance crackdown, the reality is that widespread grassroots participation continues,” Ryan Yoon, senior analyst at Tiger Research, told Decrypt. “Nigeria won't become a stablecoin hub overnight, but stablecoin adoption could help with domestic currency management.”
While the new stance signals a regulatory thawing of sorts, some remain skeptical that policy rhetoric alone can undo the damage.
“Nigeria’s stablecoin signal is a strong step, but real revival requires regulatory reliability and robust ramps,” Hank Huang, CEO of Kronos Research, told Decrypt.
Firms that seek to operate in the country WOULD need clear frameworks, reliable access, and “predictable enforcement” to “seriously consider” entering the market, Huang added.
These, along with “strong legal safeguards and visible re-engagement from major players,” could signal stability and confidence, he said.
“With solid fundamentals in place, the country has potential, but restoring DEEP liquidity will take consistent policy, clear fiat access, and time to rebuild trust,” Huang said.
