April Regulatory Roundup 2025
Welcome to the April regulatory round up. We provide you with the latest regulatory news and insights across Nigeria, Africa and beyond. Let’s dive into a thoughtful and comprehensive update on recent developments.
Regulatory Update in Nigeria
- Nigeria’s new laws now recognize cryptocurrencies as securities
- PenCom Launches Automated Pension Remittance System to Enhance Compliance
- Nigeria’s SEC reforms borrowing after court verdict
- SEC Warns Ponzi Scheme Operators for fines under New Law
- CBN Raises Interest Rates on Treasury Bills Amid Strong Investor Demand
- Telcos, banks to charge USSD fees from airtime
- CBN Strengthens Regulatory Oversight on BDCs with New AML Compliance Checks
- CBN issues new directives on PAPSS transactions
Across Africa: Welcoming Innovation While Addressing Challenges
- Starlink secures ISP license in Somalia
- Central Bank of Kenya lifts 10-year ban on new bank licences
- Flutterwave expands its ‘Send App’ to Ghana
Across the World
- CFPB to Revoke BNPL Rule
- European Payment Alliance Advances Instant Cross-Border Transactions
- Central Banks Launch Tender for Cross-Border Payments Network Operator
- Bahrain’s Central Bank Grants Payment Service Provider Licence to Binance
Crypto Scoop
- FDIC Introduces ‘New Approach’ for Banks Engaging in Crypto Activities
- Kenya aims to regulate crypto with new bill
Mergers and Acquisitions
- Ripple and Chipper Cash Partner to transform crypto payments in Africa
- QorPay Integrates Visa Connect to Enhance Payment
- Mastercard and Nomba partners to revolutionize payment in Africa
- Mastercard Expands Virtual Card to enhance commercial payments
- Happy Pay has partners with Peach Payments to expand BNPL in South Africa
- Paysend partners with Tink to boost open banking
- South Africa’s Stitch raises $55M in new funding
NEWS
Regulatory Update in Nigeria
Nigeria’s new laws now recognize cryptocurrencies as securities
In a landmark move, President Bola Tinubu signs the Investment and Securities Act 2024 into law which officially recognizes cryptocurrencies and other virtual assets as securities for the first time and brings Virtual Asset Service Providers (VASPs), Digital Asset Operators (DAOPs), and Digital Asset Exchanges under the purview of the SEC.
PenCom Launches automated Pension system to boost Compliance
PenCom just launched a new system called PCRS to make pension payments easier and more accurate. The system is designed to check employee details before sending money to their retirement accounts, cutting down on errors and delays. As more regulators adopt supervisory technology in Nigeria, we can reasonably expect reduced bottlenecks and operational efficiency barring other limiting factors.
Nigeria’s SEC reforms borrowing after court verdict
The SEC is updating regulations to enhance oversight of government and corporate borrowing. These reforms aim to support grassroots development by ensuring direct federal funding to local governments and improve capital-raising opportunities for businesses, enhancing Nigeria’s global competitiveness.
SEC Warns Ponzi Scheme Operators for fines under New Law
Under the new ISA 2025, the SEC now has the authority to prosecute Ponzi scheme operators, who could face fines up to N20 million, a 10-year prison sentence, or both. This is a major shift from the previous rules, offering stronger enforcement against alleged ponzi operators like CBEX.
CBN Raises treasury bill rates amid strong investor demand
The Central Bank of Nigeria (CBN) has decided to offer less money in Treasury Bills (NTBs) — N400 billion instead of the usual N800 billion. This change is because fewer people are buying them. In the last auction, demand dropped by over 21%, and the CBN had to reduce the amount it sold. To make these bills more attractive, the CBN raised the interest rates on short-term bills, but kept the long-term bill rate the same. So now may be a good time for you to consider investing in short treasury bills.
Telcos, banks to charge USSD fees from airtime
Telecom operators and banks will now charge you directly for USSD banking services. Instead of banks covering the cost, your airtime will be used to pay for each USSD transaction. The new model aims to end the ongoing USSD debt issue. We can’t wait to see how this will play out.
CBN Strengthens Regulatory Oversight on BDCs with New AML Compliance Checks
The Central Bank of Nigeria (CBN) has instructed Bureau De Change (BDC) operators to strictly follow anti-money laundering (AML) and counter-terrorism financing (CTF) rules. To ensure compliance, the CBN will conduct mystery shopping exercises to check BDCs’ internal controls, KYC processes, and transaction monitoring. This move aims to strengthen regulatory standards across Nigeria’s financial sector.
CBN issues new directives on PAPSS transactions
The CBN has updated the rules for using PAPSS, a system that enables faster and cheaper cross-border payments in local African currencies. Key changes include simplified documentation for small transactions, direct forex access for banks, and stricter requirements for import/export documentation. The CBN encourages widespread adoption of PAPSS to boost intra-African trade.
Across Africa: Welcoming Innovation While Addressing Challenges
Starlink secures ISP license in Somalia
Somalia’s National Communications Authority has granted SpaceX’s Starlink an operational license to serve as an ISP nationwide. This move aims to boost internet access—particularly in remote and underserved areas—and follows Starlink’s recent launches in Niger and Liberia, marking its continued expansion across Africa.
Central Bank of Kenya lifts 10-year ban on new bank licences
The Central Bank of Kenya (CBK) will begin accepting new commercial bank license applications on July 1, 2025, after a moratorium since 2015. This follows improvements in the banking sector’s legal framework. New banks will face a steep minimum capital requirement of KSh10 billion, up from KSh1 billion, under the 2024 Business Laws (Amendment) Act.
Flutterwave expands its ‘Send App’ to Ghana
Flutterwave has launched its Send App in Ghana to make receiving international remittances easier. The app enables individuals and businesses to get funds directly into their bank accounts or mobile wallets like MTN Mobile Money, Telecel Cash, and AirtelTigo Money. Designed for purposes such as family support, tuition, and business
Across the World
CFPB to Revoke BNPL Rule
The Consumer Financial Protection Bureau (CFPB) is reversing its stance on Buy Now, Pay Later (BNPL) regulations by withdrawing a rule that treated BNPL lenders like credit card companies. The rule would have required BNPL firms to offer consumer protections, such as dispute rights and refund requests, similar to those for credit card users.
European Payment Alliance Advances Instant Cross-Border Transactions
EuroPA is making it easier to send and receive money instantly in Italy, Portugal, Spain, and Andorra using mobile transfer systems. The service connects 50 million users and 186 financial institutions, handling over 2 billion transactions in 2024. EuroPA aims to capture 65% of the market and will have full system coverage by June. The goal is to reduce reliance on US-based payment systems and expand beyond the eurozone.
Central Banks Launch Tender for Cross-Border Payments Network Operator
Five central banks are seeking a Nexus Technical Operator (NTO) to manage infrastructure for instant cross-border payments under Project Nexus. The project aims to link real-time payment systems globally using ISO 20022 standards and custom APIs, enhancing compliance and transaction security. This follows a successful 2022 proof-of-concept with central banks from Europe, Malaysia, and Singapore, with further collaboration from Indonesia, the Philippines, and Thailand.
Bahrain’s Central Bank Grants Payment Service Provider Licence to Binance
The Central Bank of Bahrain has issued a Payment Service Provider (PSP) licence to BPay Global, a Binance Group firm, to enhance Bahrain’s digital payments and crypto-finance sector. With the licence, BPay Global can now offer fiat services like top-ups, withdrawals, e-wallets, and payment processing to Binance users worldwide, enabling direct fiat transactions on the platform.
Crypto Scoop
FDIC Introduces ‘New Approach’ for Banks Engaging in Crypto Activities
The United States Federal Deposit Insurance Corporation has updated its regulations, allowing FDIC-supervised institutions to engage in cryptocurrency activities without prior approval, as long as they have strong risk management practices. This replaces a 2022 rule requiring prior notification. The FDIC aims to encourage innovation while maintaining financial stability and will release further guidance and work with other regulators on a unified framework for banks’ involvement in crypto.
Kenya aims to regulate crypto with new bill
Kenya has introduced its first crypto regulation through the Virtual Asset Service Providers Bill 2025, proposing licenses for stablecoins, ICOs, wallets, and exchanges. The bill establishes dual oversight: the Central Bank will regulate payment and wallet services, while the Capital Markets Authority will oversee trading platforms and investment advisors.
Mergers and Acquisitions
- Ripple and Chipper Cash Partner to transform crypto payments in Africa
- QorPay Integrates Visa Connect to Enhance Payment
- Mastercard and Nomba partners to revolutionize payment in Africa
- Mastercard Expands Virtual Card to enhance commercial payments
- Happy Pay has partners with Peach Payments to expand BNPL in South Africa
- Paysend partners with Tink to boost open banking
- South Africa’s Stitch raises $55M in new funding
