August 2026 Regulatory Roundup
Welcome to August’s edition of Regulatory Round-up, where we provide you with the latest regulatory developments across Nigeria, Africa, and beyond within the month. Let’s dive into a thoughtful, comprehensive update on recent developments in the regulatory landscape.
1. NRS Introduces New Tax Framework for Virtual Assets
The Nigeria Revenue Service (‘NRS’) has issued its Guidelines on the Taxation of Virtual Assets, providing an administrative framework for the taxation of cryptocurrencies, stablecoins, NFTs and other virtual assets. The Guidelines cover taxpayers, Virtual Asset Service Providers (‘VASPs’), P2P operators and other participants, with provisions addressing registration, reporting, record-keeping, valuation and applicable taxes. The development marks another step towards the formalisation of Nigeria’s digital asset market and means businesses operating in this space must now consider their tax obligations alongside licensing and AML requirements.
2. SEC Proposes New Rules to Strengthen Regulation of Digital and Virtual Assets
The Securities and Exchange Commission (‘SEC’) has released proposed rules covering the issuance, tokenisation, trading, custody, transfer, settlement, investment and advisory activities relating to digital and virtual assets. The proposed rules would apply not only to businesses operating in Nigeria but also to persons providing services to Nigerian residents or targeting Nigerian investors through digital channels. This signals a broader regulatory perimeter for digital assets and reinforces the need for businesses in this space to assess their licensing, governance, custody, disclosure and operational structures ahead of the final rules.
3. CBN Opens Second Regulatory Sandbox for Virtual Assets and Data-Enabled Financial Services
The Central Bank of Nigeria (‘CBN’) has opened the second cohort of its Regulatory Sandbox Programme, introducing dedicated tracks for Virtual Asset Service Providers and Data-Enabled Financial Services. The VASP track covers innovations involving stablecoins, payments, settlement, custody, wallets and related infrastructure, while the second track focuses on permission-based data sharing and other technology-driven financial services. This shows that the regulatory approach is increasingly shifting from simply restricting emerging technologies to creating controlled environments where innovative business models can be tested under regulatory supervision.
4. SEC Admits Additional Virtual Asset Firms into Regulatory Incubation Programme
The SEC has cleared three additional Virtual Asset Service Providers; Pisi Payments Solution Limited, BC Access (Nigeria) Limited and Yellow Card Financial Limited, for admission into its Accelerated Regulatory Incubation Programme (‘ARIP’). The approval-in-principle allows the firms to operate within the defined scope of the programme while remaining subject to regulatory conditions and supervision. The development further demonstrates the SEC’s move towards bringing digital asset businesses into a controlled regulatory framework rather than leaving the sector outside formal supervision.
5. SEC Tightens AML/CFT Requirements Following FATF Risk Updates
The SEC has directed capital market regulated entities to implement the latest Financial Action Task Force (‘FATF’) statements on high-risk jurisdictions and jurisdictions under increased monitoring. Regulated entities are also required to subscribe to Nigeria’s Sanctions Alerts system to ensure timely access to terrorist financing and proliferation financing designations. This reinforces the growing importance of sanctions screening, enhanced due diligence and transaction monitoring for businesses operating within Nigeria’s financial and capital markets.
6. Nigeria Moves Closer to Faster Capital Market Settlement with T+1 Clarification
The SEC has clarified the implementation of the T+1 settlement cycle for equities and commodities settled through the Central Securities Clearing System (‘CSCS’), confirming a 5:00 p.m. settlement deadline on the following business day. The Commission also clarified that foreign portfolio investors are not required to prefund their accounts, although capital market operators must maintain controls to ensure timely settlement. The move is expected to reduce counterparty risk, improve liquidity and make the Nigerian capital market more attractive to domestic and international investors.
7. Nigeria’s Payment Data Localisation Requirement Comes Into Sharper Focus
The CBN’s requirement that payment transaction data generated in Nigeria be stored and managed within Nigeria has become a major operational issue for banks, fintechs and payment service providers, with the compliance deadline set for 1 January 2027. Industry discussions in August have highlighted the scale of the transition, particularly for businesses dependent on international cloud infrastructure. For payment businesses, this is not simply an IT issue; it raises questions around data architecture, third-party contracts, cybersecurity, business continuity and compliance with Nigeria’s broader data protection requirements.
8. Federal Government Strengthens Data Protection Compliance Across Public Institutions
The Federal Government has directed Ministries, Departments and Agencies (MDAs) to comply fully with the Nigeria Data Protection Act 2023. The directive reinforces the government’s focus on responsible handling of personal data and strengthens the role of data protection in public administration. The development also reflects the wider direction of Nigeria’s privacy regime, where organisations are increasingly expected to demonstrate practical compliance rather than simply having data protection policies on paper.
9. NITDA Pushes Sovereign Cloud Infrastructure as Data Localisation Gains Attention
The National Information Technology Development Agency (‘NITDA’) and the Budget Office have inaugurated a multi-agency technical committee to advance implementation of Nigeria’s Sovereign Cloud initiative. The development comes amid growing regulatory and national-security concerns around Nigeria’s reliance on foreign cloud infrastructure. For businesses, the increasing focus on local infrastructure may have implications for how sensitive financial and personal data is stored, processed and transferred, particularly as sector-specific localisation requirements continue to develop.
10. CBN Eases Access to Its Discount Window for Banks
The Central Bank of Nigeria has removed restrictions that previously prevented banks from accessing its Standing Lending Facility where they had participated in the foreign exchange market or purchased government securities at primary auctions. Under the revised approach, participation in these activities will no longer automatically affect a bank’s eligibility to access the discount window. The change provides greater liquidity flexibility for banks and signals a more accommodating approach to managing funding and liquidity conditions within the financial system.
1. Ghana Publishes Full List of Virtual Asset Sandbox Participants
The Securities and Exchange Commission (SEC) Ghana has published the full list of entities admitted into its Virtual Asset Sandbox, covering activities such as asset tokenisation, virtual asset brokerage, exchanges, custody and trading platforms. The sandbox is intended to generate regulatory data that will help the SEC develop activity-specific licensing and registration requirements under Ghana’s Virtual Asset Service Providers Act, 2025. Ghana’s approach shows a growing preference across African markets for testing digital asset models within controlled regulatory environments before wider market access is permitted.
2. South Africa Moves to Strengthen Oversight of Cross-Border Crypto Transactions
The South African Reserve Bank (SARB) and National Treasury have published a draft Crypto Assets Manual for public comment, focusing on the treatment of cross-border crypto asset transactions and the responsibilities of authorised Crypto Asset Service Providers. The proposed framework seeks to bring greater clarity to cross-border crypto flows and reporting obligations. For businesses operating across African markets, this reinforces the need to consider foreign exchange, reporting, licensing and AML requirements when structuring digital asset transactions across borders.
3. South Africa Begins Transition of Key Payment-System Functions to SARB
The South African Reserve Bank has commenced the transition of payment-system market infrastructure functions previously handled by the Payments Association of South Africa (PASA) to SARB and PayInc. From 11 August, certain authorisation and registration functions moved to SARB, while existing authorisations remain valid unless otherwise determined. The transition strengthens SARB’s direct role in payment-system regulation and highlights the broader trend towards tighter oversight of payment infrastructure across African financial markets.
1. EU Begins Enforcement of AI Act Transparency Requirements
The European Union began enforcing key provisions of its Artificial Intelligence (AI) Act on 2 August 2026, including new transparency requirements for certain AI systems. Businesses may now be required to inform users when they are interacting with AI and to clearly identify certain AI-generated or manipulated content, including deepfakes. For fintechs and other technology businesses operating across borders, the development demonstrates that AI governance is becoming a practical compliance requirement covering transparency, risk management and responsible deployment of AI systems.
2. US SEC Proposes New Framework for Crypto Asset Offerings
The United States Securities and Exchange Commission (SEC) has proposed ‘Regulation Crypto Assets’, creating a tailored framework for certain investment contracts involving crypto assets. The proposal includes exemptions for offerings of up to $5 million over four years and up to $75 million in a 12-month period, subject to specified disclosure requirements. The proposal represents a significant move towards creating clearer routes for crypto businesses to raise capital while maintaining investor protection and securities-law safeguards.
3. US Treasury Moves Forward with Regulation of Payment Stablecoins
The US Department of the Treasury has issued a proposed rule to implement provisions of the GENIUS Act relating to the issuance, offering and sale of payment stablecoins. Under the emerging framework, persons generally will not be permitted to issue payment stablecoins in the United States without an appropriate federal or state licence once the regime takes effect. The development is significant for global payment and fintech businesses because it further moves stablecoins from the experimental space into a formal financial regulatory framework.
4. US Changes Beneficial Ownership Reporting Requirements
The Financial Crimes Enforcement Network (FinCEN) has finalised changes to the US Beneficial Ownership Information reporting framework. Under the new rules, US companies are exempt from BOI reporting requirements, while certain foreign companies registered to do business in the US remain subject to reporting obligations. The change demonstrates how beneficial ownership requirements continue to evolve globally and highlights the importance for multinational businesses of understanding the specific reporting obligations applicable in each jurisdiction.
1. Santander Completes Acquisition of Webster Financial Corporation
Banco Santander completed its acquisition of Webster Financial Corporation in August following regulatory approvals from the US Office of the Comptroller of the Currency, the European Central Bank and the Federal Reserve. The transaction strengthens Santander’s position in the US banking market and expands its customer base and commercial banking capabilities. The deal demonstrates the continued consolidation of financial institutions seeking greater scale and stronger market positions.
2. Citi Agrees to Acquire Kard Financial
Citi has entered into an agreement to acquire Kard Financial, a platform providing commerce media and rewards technology to banks and fintechs. The acquisition will allow Citi to combine Kard’s technology with its existing customer and merchant ecosystem to develop more personalized rewards and engagement offerings. The transaction highlights the growing interest among traditional financial institutions in acquiring specialised fintech capabilities rather than building them internally.
3. BMO and RBC Agree to Sell Moneris to Francisco Partners
Bank of Montreal (BMO) and Royal Bank of Canada (RBC) have agreed to sell Moneris, a major payments technology business, to private equity firm Francisco Partners for approximately C$2 billion. The transaction reflects continued investor interest in established payment infrastructure and technology businesses. It also demonstrates how payment processing and financial infrastructure remain attractive areas for strategic and private-equity investment.
1. Yellow Card Secures $40 Million to Expand Stablecoin Infrastructure
African stablecoin infrastructure provider Yellow Card has secured $40 million in strategic funding from investors including SC Ventures, Sony Innovation Fund, Polychain Capital and Blockchain Capital. The funding will support the expansion of its Global USD Accounts and stablecoin payment infrastructure connecting businesses to markets globally. The raise further demonstrates the growing investor interest in stablecoin infrastructure as African businesses seek faster and more efficient cross-border payment solutions.
2. Ventures Platform Closes Second Pan-African Fund at $84 Million
African venture capital firm Ventures Platform has closed its second institutional fund at $84 million, exceeding its original $75 million target. The fund will support early-stage companies across Africa, including businesses operating in fintech, healthcare, SaaS and other technology-driven sectors. The raise is particularly notable against a more cautious global venture market and reflects continued institutional confidence in African technology businesses with strong growth and infrastructure potential.
3. Jem Raises $8.4 Million to Expand Workforce Management Platform
South African workforce management fintech Jem has raised $8.4 million in a Series A round led by Quona Capital. The company, which serves more than 250,000 frontline workers across over 200 companies, plans to use the funding to accelerate product development and expansion. The raise highlights continued investor interest in fintechs solving practical business and workforce challenges rather than focusing solely on consumer payment products.
We hope you found our August Regulatory Roundup 2026 helpful and informative. If you have questions or insights about the regulatory landscape in your region? Reach out to us on any of our social media handles, email and we would be available to help. Also share your thoughts in the comments below and let’s continue the conversation!
For a deep dive into past regulatory changes, catch up on our July Regulatory Roundup and explore our complete Regulatory Roundup Archive for more material
Please note that the information provided in this article does not constitute legal advice and should not be construed as such. For legal advice specific to your situation, please consult a legal practitioner.
