The Central Bank of Nigeria has launched a pilot supervision program for virtual asset service providers, selecting six entities for the first group. KuCoin stands out as the only global cryptocurrency exchange on the list. According to local reports, the initial phase includes Nigerian payments and cryptocurrency players cNGN, Flutterwave, Juicyway, KoinKoin and Paystack, as well as KuCoin, which serves a global user base and is Africa’s largest cryptocurrency market by volume.
The pilot is designed to test how selected VASPs perform under direct central bank supervision on issues such as anti-money laundering, counter-terrorist financing, and counter-proliferation financing, based on Financial Action Task Force Recommendations 15 and 16. A CBN statement cited by media outlets such as Leadership and AInvest described the program as a structured effort to understand VASP business models, risk management and data flows, and drive participants towards full alignment with the FATF. compliance.
Under this arrangement, participating companies are required to have regular, structured regulatory communications with central banks and other institutions. They must submit regular data on AML/CFT/CPF performance, undergo audits for customer onboarding and KYC, sanctions screening, transaction monitoring, and demonstrate a reliable plan for tracking cross-border flows under the Cryptocurrency Remittance Travel Rule.
The pilot, which is expected to run for six to nine months, will not itself confer a license or formal approval, but will introduce KuCoin and the local platform into what the CBN calls a “controlled and structured environment” for oversight. Officials say the goal is to move from piecemeal restrictions to a risk-based regime that can weed out bad actors and keep Nigeria’s $92.1 billion annual cryptocurrency flows within a more stable and transparent framework.
For KuCoin, being included in the first group alongside local fintech leaders is a sign that Nigerian regulators see the exchange as a core liquidity node worthy of bringing into its official borders. According to an analysis by a regional news outlet, the pilot involved “Nigeria’s most visible VASPs”, suggesting that KuCoin’s role in local cryptocurrency activity was inevitable for the CBN’s first surveillance experiment.
The choice also fits with KuCoin’s broader policy to improve its compliance posture across emerging markets, as regulators from Africa to Asia tighten regulations on offshore exchanges, which have seen years of largely unregulated growth. If KuCoin can meet Nigeria’s demands for governance, oversight and compliance with travel rules, it will strengthen the case that large global platforms can operate under domestic supervision rather than being forced out of major markets.
