Category: Regulatory Roundup

Regcompass November Regulatory Roundup 2025

Welcome to the November 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.

This edition of RegCompass’s Regulatory Round-Up looks at what really matters and why it matters for anyone operating in today’s evolving digital and financial landscape

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IN THIS EDITION

News in Nigeria

1. FCCPC Sets Deadline for Digital Lending Compliance
2. Regulatory Bodies form Joint Group against Digital Wallet Fraud
3. CBN Issues warning Against Unlicensed Zuldal Microfinance Bank
4. NIBSS Launches National Payment Stack to Unify Digital Transactions
5. FG Tackles Housing Deficit with Non-Interest Mortgage Framework
6. FIRS Imposes 10% Withholding Tax on Short-Term Securities
7. CBN releases circular and guideline on Serial Dud Cheque

Across Africa

1. Kenya’s tax tribunal rules payment switches are VAT-free
2. Central Bank of Eswatini Balances Digital Innovation and Consumer Protection
3. Standard Bank First African Bank to Integrate with China’s CIP.
4. Africhange Launches UK Bank Accounts, Achieves Bank of Canada PSP Status
5. South African Reserve Bank Flags Crypto Flows as Financial Stability Risk

Across the world

1. US Judge Temporarily Blocks CFPB ‘Open Banking’ Rule Enforcement
2. Dubai Government Approves Global Digital Wallets for Fee Payments
3. Bank of India unveils UPI payment upgrades
4. Hong Kong eases crypto laws, allowing exchanges to tap liquidity
5. CFPB to Narrow Anti-Discrimination Rules, Targeting ‘Disparate Impact’

Crypto scoop

1. Nigeria to Tax Individual Crypto Gains and Mandate Exchange Reporting in 2026
2. Bank of England Softens Stablecoin Stance with New Investment Rules
3. Sierra Leone Explores Blockchain Integration
4. Russia’s Central Bank Allows Banks to Engage in Digital Asset Operations
5. Kenya Passes VASP Bill, Adopts Multi-Agency Crypto Oversight
6. AFSA to Finalize Cryptocurrency Law by End of Year

Deals and Raises

Merger & Acquisition

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FCCPC Sets Deadline for Digital Lending Compliance

The Federal Competition and Consumer Protection Commission (FCCPC) has set a full compliance deadline for all digital lending platforms. The final deadline for all digital lending intermediaries to adhere to the new consumer lending regulations is January 5, 2026. The directive aims to curb unethical practices and ensure fairness and transparency, backed by accompanying Guidelines under the FCCPA 2018.

Regulatory Bodies form joint Group against Digital Wallet Fraud

Agent banking has been one of the recent successes of the Nigerian fintech licensing revolution. However, it has been vulnerable to abusive and criminal uses including fraud and terrorist financing. The CBN has now moved to address this vulnerability with a new guideline introducing new controls. Some of these include agent restriction to a single principal, geo-location etc.  If your fintech has agent banking operations, now is the time for a review and alignment.

CBN Releases Circular and Guideline on Serial Dud Cheque

The Central Bank of Nigeria (CBN) has introduced a stringent rule to curb cheque fraud, following
a ₦5.15 trillion surge in Q1 2025. Issuing three dud cheques will result in a five-year banking ban and denial of all bank credit. Offenders lose clearing system access; banks failing to report face
₦5 million fines, with compliance officers held liable.

NIBSS Launches National Payment Stack to Unify Digital Transactions

The Nigeria Inter-Bank Settlement System (NIBSS) launched the National Payment Stack (NPS), a unified digital backbone for electronic transactions. The NPS enables instant, secure, interoperable payments across banks/FinTechs and enhances data security. The Federal Government views the NPS as a strategic foundation to deepen financial inclusion and drive economic growth.

FG Tackles Housing Deficit with Non-Interest Mortgage Framework

The Securities and Exchange Commission (SEC) and the Federal Mortgage Bank of Nigeria (FMBN) have formed a strategic partnership to develop a robust, Sharia-compliant Non-Interest Mortgage (NIM) ecosystem in a bid to bridge Nigeria’s 28 million unit housing gap. The SEC will provide regulatory guidance and a framework to facilitate the issuance of Sukuk and other capital market products to fund these mortgages.

FIRS Imposes 10% Withholding Tax on Short-Term Securities

The Federal Inland Revenue Service (FIRS) has directed financial institutions to deduct a 10%
Withholding Tax (WHT) on interest earned from short-term securities. This directive shifts from the previous regime that exempted interest on such instruments from tax deductions to encourage investment. Securities now subject to the 10% WHT include treasury bills, corporate bonds, promissory notes, and bills of exchange, to be deducted at source. The policy requires relevant entities to remit the tax to FIRS by the 21st day of the following month, potentially altering investor strategy and appetite for these assets.

CBN Issues Warning Against Unlicensed Zuldal Microfinance Bank

The Central Bank of Nigeria (CBN) hereby warns that Zuldal Microfinance Bank Limited is not licensed to conduct banking or microfinance activities in Nigeria, in violation of BOFIA 2020. The entity’s claims of regulatory approval are false and misleading. The public is strongly advised to refrain from any financial dealings with this unlicensed institution. Engagement with such entities is undertaken strictly at individuals’ own risk.

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Kenya’s tax tribunal rules payment switches are not VATable

Kenya’s Tax Appeals Tribunal has determined that payment-switch operators connecting banks, mobile money, and payment providers qualify as providers of VAT-exempt financial services, not ICT services. This ruling overturns the KRA’s assessment and grants affected firms exemption from the 16% VAT. The decision establishes a key regulatory distinction between technology functions and financial services for tax treatment. It also signals that the planned National Payment Switch may similarly benefit from VAT-exempt status, potentially reducing transaction costs.

Central Bank of Eswatini Balances Digital Innovation and Consumer Protection

The Central Bank of the Kingdom of Eswatini is focused on balancing rapid digital payment innovation with the need for robust consumer protection and data security. The bank emphasizes its commitment to establishing regulatory guardrails while simultaneously supporting the growth of the digital economy. The initiative aims to regulate and make digital services more affordable, specifically for Small and Medium Enterprises (SMEs) and the informal sector. This effort signals the bank’s strategy to foster a secure, accessible, and inclusive digital financial environment for all citizens.

Standard Bank First African Bank to Integrate with China’s CIPS

Standard Bank, South Africa’s largest bank, has become the first African institution to directly integrate with China’s Cross-Border Interbank Payment System (CIPS). The integration allows African businesses to pay Chinese suppliers directly in Renminbi (RMB), bypassing the US dollar to reduce delays, fees, and currency volatility. This strategic move supports a rapidly growing trade relationship, with China-Africa trade surpassing $134 billion in the first five months of 2025.

Kenya Regulator Publishes Drafts for Major Insurance Sector Overhaul

The Insurance Regulatory Authority (IRA) has published 13 Draft Regulations proposing a major overhaul of the insurance sector’s regulatory framework. The drafts propose recognizing cybersecurity and virtual assets insurance as new sub-classes of general insurance, aligning with the country’s Virtual Assets Services Providers Act, 2025. The new guidelines revise the definition of “independent director” and increase licensing fees for all licensees due to rising supervisory complexity.

South African Reserve Bank Flags Crypto Flows as Financial Stability Risk

The South African Reserve Bank (SARB) has identified cryptocurrencies as a potential risk to domestic financial stability in its latest Financial Stability Review (2025). The SARB noted that almost R63 billion has flowed from South African Bitcoin wallets abroad, creating a channel that could potentially obstruct exchange controls. In response,the SARB and National Treasury are currently developing frameworks to regulate cross-border crypto flows and amend existing exchange control rules.

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US Judge Temporarily Blocks CFPB ‘Open Banking’ Rule Enforcement

A federal judge has temporarily blocked the enforcement deadlines for a U.S. Consumer
Financial Protection Bureau (CFPB) “open banking” rule. U.S. District Judge halted the rule in a
lawsuit brought by a coalition of banking groups. The pause allows the CFPB, now under new
leadership in the Trump administration, to undertake a new and revised rulemaking process. This
development aligns with a broader push in the current administration to rein in the CFPB, which
one official has suggested should be shut down.

Dubai Government Approves Global Digital Wallets for Fee Payments

Dubai’s Department of Finance has approved the integration of multiple international digital
wallets for payment of all Government of Dubai service fees. The functionality, slated for
commercial launch before end-2025, supports the government’s transition toward a fully cashless service ecosystem. This expansion is expected to enhance payment convenience for residents, corporates, and tourists. It also strengthens transparency and efficiency across public service transactions.

CFPB to Narrow Anti-Discrimination Rules, Targeting ‘Disparate Impact’

The U.S. Consumer Financial Protection Bureau (CFPB) is preparing to narrow the scope of anti-
discrimination rules under the Equal Credit Opportunity Act (ECOA) 1974. This proposal is
expected to negate ‘disparate impact,’ which targets neutral lending practices that unintentionally
disadvantage minority and protected groups. The move aligns with the Trump administration’s
effort to curtail regulations that it argues unfairly penalize businesses for outcomes beyond their
control

Bank of India unveils UPI Payment Upgrades

The Reserve Bank of India (RBI) has announced major upgrades to the Unified Payments
Interface (UPI) to modernize and enhance user convenience. UPI transactions will soon be
possible through smart devices like smartwatches and cars, making digital payments more
accessible. A key feature is an AI-driven voice authentication system expected to support over 28
Indian languages to boost adoption among non-English and rural users. The system will handle
UPI issues, allowing users to check status, file complaints, and track progress, simplifying
resolution for both customers and banks.

Hong Kong Eases Crypto Laws, Allowing Exchanges to Tap Liquidity

Hong Kong’s Securities and Futures Commission (SFC) has announced an easing of digital asset
regulations to attract international investors and deepen market liquidity. Local crypto exchanges
will now be allowed to tap into global order books from their offshore affiliates, removing the
previous restriction to only match orders within Hong Kong. Investor protection measures require
offshore transactions to be pre-funded with delivery-versus-payment (DVP) settlements, and
affiliates must submit to SFC surveillance to prevent market manipulation.

CFPB to Narrow Anti-Discrimination Rules, Targeting ‘Disparate Impact’

The U.S. Consumer Financial Protection Bureau (CFPB) is preparing to narrow the scope of anti-
discrimination rules under the Equal Credit Opportunity Act (ECOA) 1974. This proposal is
expected to negate ‘disparate impact,’ which targets neutral lending practices that unintentionally
disadvantage minority and protected groups. The move aligns with the Trump administration’s
effort to curtail regulations that it argues unfairly penalize businesses for outcomes beyond their
control.

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Nigeria to Tax Individual Crypto Gains and Mandate Exchange Reporting in 2026

Starting January 2026, individuals in Nigeria will be required to pay income tax on profits derived
from cryptocurrency transactions. The new tax regime mandates Virtual Asset Service Providers
(VASPs) registered in the country to report detailed user transaction activity to tax authorities.
VASPs that default risk stiff penalties, starting with ₦10 million in the first month and ₦1 million for
every subsequent month of non-compliance, including potential license revocation.

Bank of England Softens Stablecoin Stance with New Investment Rules

The Bank of England (BoE) has proposed new rules suggesting a softer regulatory approach to
widely used stablecoins in the UK. The new proposal permits stablecoin issuers to invest up to
60% of their backing assets in government debt. This is a shift from the previous, stricter
requirement, though the BoE still plans to cap the amount of stablecoins individuals and
businesses can hold.

Kenya Passes VASP Bill, Adopts Multi-Agency Crypto Oversight

Kenya’s parliament passed the Virtual Asset Service Providers Bill, 2025, creating the country’s first comprehensive crypto licensing framework. The approved bill establishes a multi-agency oversight model, placing crypto supervision under the Central Bank of Kenya (CBK) and the Capital Markets Authority (CMA). A controversial provision was removed that would have given a Binance-linked lobby group, the VACC, a seat on the new regulator.

AFSA to Finalize Cryptocurrency Law by End of Year

The Albanian Financial Supervisory Authority (AFSA) announced it will finalize the draft law on
cryptocurrencies and digital assets (MiCA) by the end of this year. The draft law, which aims to
set clear rules for the growing crypto market, has been prepared and sent for stakeholder
consultation. AFSA is benchmarking Albania’s legal framework against the European Union’s fully
applied MiCA regulation to ensure transparency, security, and investor protection.

Sierra Leone Explores Blockchain Integration

Sierra Leone is signaling its intention to phase out traditional systems by integrating blockchain
technology. Minister of Communication hosted experts to discuss bilateral agreements and
accelerate digitization efforts. Potential use cases include digital identity, public records,
elections, and resource traceability.

Russia’s Central Bank Allows Banks to Engage in Digital Asset Operations

Russia’s central bank has signaled a shift in its crypto policy, allowing banks to engage in digital
asset operations under tight regulations. The decision aims to balance financial innovation and
risk management while broader legislation is being drafted to support a fully regulated crypto
environment. A comprehensive crypto law is expected by 2026, with licensing for service
providers potentially starting by the end of 2025.

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1. Visa, Mastercard reach revised swipe fee settlement
2. Flutterwave, Polygon agree cross-border payments deal
3. MoMo PSB seals deal with Thunes to expand cross-border payments
   

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1. KCB acquires Minority Stake with Pesapal
2. Mastercard Nears $2bn Acquisition of Crypto Firm Zerohash
3. Peach Payments merges with RelyComply to strengthen compliance

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Do 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. You can find our previous Regulatory Roundup 2025 here.

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.

Regcompass October Regulatory Roundup 2025

October made its mark!

Nigeria finally stepped off the FATF grey list, a sign that years of reform are paying off but staying on that path will take constant vigilance. At home, the CBN and NDPC made moves reminding us that fintech innovation and data protection aren’t just buzzwords; they’re becoming non-negotiable.



Across Africa, countries like Ghana and Eswatini are experimenting with crypto rules and digital ID platforms, testing how to balance opportunity with trust. And around the world, from California’s new AI rules to the scrutiny of big tech, one lesson is clear: innovation without accountability is no longer an option. 


This edition of RegCompass’s Regulatory Round-Up looks at what really matters and why it matters for anyone operating in today’s evolving digital and financial landscape

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IN THIS EDITION

News in Nigeria

1. FATF Delists Nigeria From The Grey List
2. Central Bank of Nigeria (CBN) Tightens POS Rules, Limits Agents To One Financial Institution
3. CBN Proposes New Rules Linking ATM Deployment to Card Issuance
4. FCCPC Withdraws Case Against MultiChoice, Clears CEO
5. Meta, NDPC Move To Settle $32.8m Data Privacy Dispute Out of Court
6. NCC Launches Device Tracking System To Curb Fake And Stolen Phones
7. Nigeria’s New Tax Rules Expands Income Tax to Cover Digital Work

Across Africa: Welcoming Innovation while addressing challenges

1. Kenya Court Halts Parts of Cybercrime Law Over Rights Concerns
2. Ghana to Introduce Crypto Regulation by Year-End
3. Uganda Launches Asset-Backed Digital Currency Pilot
4. Kenya’s CA Orders Telcos to Adopt Licensed Digital Certificates by 2026
5. Eswatini Launches National e-KYC to Boost Financial Inclusion
6. CBK Cuts Lending Rate Again to Boost Economy
7. South Sudan Targets Manipulation in E-Money Forex Market

Across The World

1. Trump Pardons Former Binance CEO Changpeng Zhao
2. European Commission Finds Meta and TikTok Breached Transparency Rules Under DSA
3. California Enacts New Laws to Strengthen Online Child Safety and Regulate AI Chatbots

Crypto Scoop

Deals & Raises

Merger & Acquisition

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FATF Delists Nigeria From The Grey List

Nigeria’s removal from the FATF grey list marks a significant boost to its financial credibility after years of reform to strengthen supervision and enforcement. The delisting signals renewed confidence from investors and correspondent banks. This may ease compliance pressure for regulated firms, but maintaining this status will depend on consistent enforcement and continued transparency across the financial system.

Central Bank of Nigeria (CBN) Tightens POS Rules, Limits Agents To One Financial Institution

Agent banking has been one of the recent successes of the Nigerian fintech licensing revolution. However, it has been vulnerable to abusive and criminal uses including fraud and terrorist financing. The CBN has now moved to address this vulnerability with a new guideline introducing new controls. Some of these include agent restriction to a single principal, geo-location etc.  If your fintech has agent banking operations, now is the time for a review and alignment.

CBN Proposes New Rules Linking ATM Deployment to Card Issuance

CBN has issued a draft regulation that links ATM deployment to card issuance, aiming to improve service reliability and consumer protection. It also introduces faster refund timelines and stronger accountability standards. This approach reflects a renewed focus on service quality, though its impact will depend on how well banks balance infrastructure expansion with the ongoing shift toward digital channels.

FCCPC Withdraws Case Against MultiChoice, Clears CEO

Regulators appear to be taking a more open and cooperative stance with companies, signalling a shift toward dialogue rather than dispute. The FCCPC’s decision to withdraw its case against MultiChoice after reaching an understanding reflects this more pragmatic approach. Even so, firms should remember that collaboration does not replace accountability as clarity and documentation around pricing decisions remain key to maintaining regulatory confidence.

Meta, NDPC Move to Settle $32.8m Data Privacy Dispute Out of Court

The NDPC’s decision to pursue a settlement with Meta shows how data protection has moved beyond paperwork, it is now about trust and accountability. Regulators want to see clear evidence that companies respect user data and handle it responsibly. For businesses, this is a reminder that engaging early and building transparency into data practices is now part of staying compliant.

NCC Launches Device Tracking System to Curb Fake and Stolen Phones

The sale of counterfeit and stolen phones to unsuspecting Nigerians poses a serious risk to both consumers and network integrity. The rollout of the Device Management System aims to curb this fraud and improve overall network reliability. Success will depend on transparent governance and respect for user privacy, with the right balance between enforcement and trust shaping the telecom landscape.

Nigeria’s New Tax Rules Expands Income Tax to Cover Digital work

Starting January 2026, Nigeria’s updated tax rules will bring digital earners such as creators, influencers, and remote professionals into the formal tax net. Residency will be based on time spent in-country or income earned locally. The reform provides long-needed clarity on digital income, but effective enforcement will hinge on how well authorities track cross-border earnings and adapt compliance systems to the realities of the online economy.

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Kenya Court Halts Parts of Cybercrime Law Over Rights Concerns

Kenya’s suspension of parts of its cybercrime law mirrors a growing pattern across parts of Africa, where efforts to regulate online activity often edge toward restricting expression. Governments frame these moves as security measures, but they also expose a deeper struggle over control of digital spaces. Finding a fair balance between safety and freedom is becoming one of the region’s toughest governance tests.

Ghana to Introduce Crypto Regulation by Year-End

Ghana plans to introduce a dedicated cryptocurrency law before year-end, signaling a firm move toward structured oversight. With the central bank setting up a supervisory unit, regulators appear ready to treat digital assets as a lasting part of the financial system. If passed, the law could shape how other West African markets regulate the sector.

Uganda Launches Asset-Backed Digital Currency Pilot

Linking money to real economic activity is a bold move, and Uganda’s digital shilling pilot takes that bet. By tying the currency to sectors like mining and agriculture, the project signals intent beyond fintech hype but its success will depend on whether it translates into real productivity gains.

Kenya’s CA Orders Telcos to Adopt Licensed Digital Certificates by 2026

Linking money to real economic activity is a bold move, and Uganda’s digital shilling pilot takes that bet. By tying the currency to sectors like mining and agriculture, the project signals intent beyond fintech hype but its success will depend on whether it translates into real productivity gains.

Eswatini Launches National e-KYC to Boost Financial Inclusion

The Central Bank of Eswatini plans to launch a national electronic KYC platform to streamline identity verification and expand access to financial and public services. By digitising customer onboarding, it aims to reduce friction and strengthen regulatory oversight. Talks on a regional e-KYC model within SADC could further enable real-time verification and closer financial integration across borders.

CBK Cuts Lending Rate Again to Boost Economy

The Central Bank of Kenya has cut its key lending rate to 9.25%, extending its accommodative stance to support growth while inflation remains contained. The decision signals confidence in the economy’s stability, though the full impact may hinge on how quickly banks adjust lending behaviour ahead of the new loan pricing framework expected by March 2026.

South Sudan Targets Manipulation in E-Money forex market

Aligning exchange rates on digital platforms with the cash market highlights just how fragile the balance between innovation and stability can be. South Sudan’s central bank is stepping in to keep monetary policy on track as digital finance grows. The bigger test will be doing so in a way that supports, rather than hinders, wider financial inclusion.

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Trump Pardons Former Binance CEO Changpeng Zhao

In a move that has reignited political and regulatory debate, US President Donald Trump has pardoned Binance founder Changpeng Zhao, months after he completed a short prison sentence for money-laundering violations. The decision lifts remaining business restrictions and reinforces Trump’s alignment with the crypto sector, where he reportedly holds major interests. While it may signal a more pro-innovation stance, it also risks blurring the line between political influence and regulatory accountability.

European Commission Finds Meta and TikTok Breached Transparency Rules Under DSA

The European Commission has accused Meta and TikTok of violating transparency rules under the Digital Services Act by restricting researcher access to platform data. The preliminary findings underscore rising friction between regulators demanding openness and tech companies wary of exposing internal systems. How this standoff is resolved will shape the boundaries of accountability and data access in Europe’s digital oversight regime.

California Enacts New Laws to Strengthen Online Child Safety and Regulate AI Chatbots

Setting boundaries for emerging tech is overdue, and California’s new laws on AI and child safety take a strong, clear stance. By regulating AI companion chatbots, the state is sending a message that innovation cannot come at the expense of responsibility. The challenge will be ensuring these rules protect users while still allowing technology to evolve.

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VALR Becomes South Africa’s First Licensed Crypto Derivatives Issuer

VALR’s new Over-the-Counter Derivatives Provider licence marks a milestone in South Africa’s digital asset regulation, signalling growing regulatory comfort with crypto-linked products. It broadens market depth and investor confidence but also raises the bar on governance and risk management as crypto derivatives enter the regulated fold.

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1. Kenyan ISP Mawingu Raises $20 Million in Series C Funding Round
2. Sabika Secures Funding to Boost Platform Capabilities and Expand Across Egypt
3. Spiro Raises $100 Million in Record Funding for Africa’s E-Mobility Sector
4. Nigeria’s Moniepoint Secures $90 Million in Funding Round Led by ADP III and Others.
5. Nigerian-founded Rana Energy Secures $3 Million to Expand Solar Subscription Services
6. Julaya Raises $1.4 Million Through Convertible Bond Led by CDC-CI Capital
7. Egyptian Insurtech SehaTech Raises $1.1 Million Seed Round

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1. Coinbase Acquires Echo in $375 Million Deal
2. Tether Invests in Kenya’s Kotani Pay to Expand Crypto Payments Across Africa
3. Wakanow Acquires Nairabox to Expand Into Digital Ticketing and Events

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Do 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. You can find our previous Regulatory Roundup 2025 here.

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.

Regcompass September Regulatory Roundup

Welcome to the September regulatory round-up. The long-awaited General Application and Implementation Directive (GAID) finally took effect on 19 September 2025. Enforcement has started, at least on paper but public signals of NDPC’s  full enforcement readiness are still emerging.

Beyond GAID, it’s been a wild month globally. The EU has officially added crypto platforms to their sanctions regime and Canadian Law enforcement just recovered $56m from a Crypto platform. We’ll break it all down, along with the key updates from Nigeria, Africa, and beyond. Let’s get into it.

Table Of Content

Regulatory Update in Nigeria

• GAID takes effect in Nigeria on 19 September 2025.
• CBN issues new directive to Domestic Systemically Important Banks (DSIBs)
• Nigeria and South Africa likely to exit FATF Grey list
• CBN cuts MPR by 50 Basis points to 27%
• NDPC issues security advisory to Nigerians over Google Chrome vulnerabilities

Across Africa: Welcoming Innovation While Addressing Challenges

• Uganda publishes Landmark competition regulations
• Gambia enacts first ever Data Protection Law
• AI Powered fraud schemes are on the rise in South Africa
• Kenyan High Court exempts Fintechs from VAT in Landmark ruling.
• Bank of Ghana suspends operating licenses for Flutterwave and 7 others
• Zambia gets $120m from the World Bank to build Digital Infrastructure

Across the World

• AI regulation gains momentum as California enacts new law.
• China lures Techies with new KI Visa after US hiked H-IB visa fees to $100,000
• FCA convicts an Individual for Data Protection breach
• Google petitions US Supreme Court to pause Epic Playstore ruling

Crypto Scoop: 

• Google embeds stablecoin payments into AI apps
• Crypto platforms now included in EU Sanction
• Canadian Law enforcement recovers $56m in largest crypto seizure
• CFTC to allow Stablecoin as collateral in derivatives market

Deals and Raises

• Telo raises $20m to build tiny electric trucks for cities.
• SEON closes $80m Series C funding for AI Product Development and Talent Acquisition.
• Netskope raises almost $1bn in US IPO
• Kredete raises $22m series to expand credit building infrastructure with stablecoins transfers
• Juicebox raises $30M from Sequoia to revolutionize hiring with LLM-powered search

Mergers and Acquisitions

• Nexamont acquires 21.4% Stake in Royal Exchange Plc valued at N3.6 billion
• Egyptian e-health marketplace Duaya acquires SaaS provider EXMGO
• South African mobile payments company Street Wallet acquires Digitip
• OpenAI to acquire Product testing Startup StartsIg for $1.1 billion
• Leadway Holdings announces acquisition of PAL Pensions

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Regulatory News in Nigeria

GAID takes effect in Nigeria on 19 September 2025.

In March 2025, The Nigeria Data Protection Commission (NDPC) issued the General Application and Implementation Directive (GAID), and it officially became effective on 19 September 2025. The Directive repealed the NDPR 2019 and gave clearer guidelines on implementation of the NDPA

In theory, enforcement  of the Directive has begun but public signals of full enforcement readiness by the NDPC are still emerging. Some stakeholders question whether all data controllers and processors, especially smaller ones are fully equipped to meet GAID’s requirements.

CBN issues new directive to Domestic Systemically Important Banks (DSIBs)

The Central Bank of Nigeria has issued a circular  requiring DSIBs to seek CBN approval at least six months before the expiration of any incumbent MD/CEO’s tenure, and to publicly announce their successor no later than three months before transition. The directive aims to prevent leadership vacuums and preserve stability within institutions deemed “too big to fail.” For banks, the new timeline could enhance investor confidence, but it also compresses boards’ flexibility to manage succession discreetly. How DSIBs strike that balance will be telling.

Nigeria and South Africa likely to exit FATF Grey list

Nigeria and South Africa are likely to be removed from the Financial Action Task Force (FATF) grey list at the upcoming October plenary, after on-site inspections confirmed significant progress in addressing anti-money laundering (AML) and counter-terrorist financing (CFT) deficiencies. Delisting would mark a major milestone for both countries, which have faced two years of heightened monitoring, restricted capital inflows, and tighter scrutiny from global banks. It is also likely to strengthen investor confidence and reduce the compliance burden for businesses engaged in cross-border trade and finance.

CBN cuts MPR by 50 Basis points to 27%

In a landmark move, the Monetary Policy Committee of the CBN has lowered the Monetary Policy Rate (MPR) by 50 basis points (bps) to 27.00 %. This is its first rate cut since 2020.  In addition, the CBN expanded the standing facilities corridor to ±250 basis points, increased the Cash Reserve Requirement (CRR) for commercial banks to 45%, and implemented a 75% CRR on non-TSA (Treasury Single Account) public sector deposits.The signal is clear: with headline inflation easing to 20.12 % in August, the CBN is cautiously pivoting toward growth.

NDPC issues security advisory to Nigerians over Google Chrome vulnerabilities

The Nigeria Data Protection Commission (NDPC) has alerted the public to serious Chrome browser flaws that could permit remote code execution. It urged Nigerians to update browsers promptly, restrict admin privileges, and beware of malicious downloads. 

Beyond the technical details, this incident shows NDPC stepping into a more activist role in public cybersecurity.

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Across Africa: Welcoming Innovation While Addressing Challenges

Uganda publishes Landmark competition regulations

Uganda has formally gazetted the Competition Regulations, 2025, providing the long-awaited operational framework under the existing Competition Act. The rules lay out procedures for merger control, definitions of dominance, prohibitions on anti-competitive practices (tying, refusal to deal, price abuse) the structure of a technical committee within the Ministry of Trade to manage enforcement.

Gambia enacts first ever Data Protection Law

The Gambia has passed its first comprehensive Data Protection and Privacy Law (2025), replacing the patchwork reliance on the 1997 Constitution’s privacy clause and the 2019 Data Protection Strategy. The law establishes binding obligations for organizations handling personal data and marks a major step toward digital trust. Key details on its effective date and enforcement body are still awaited, leaving stakeholders with a short window to align compliance frameworks before regulators move to enforce.

AI Powered fraud schemes are on the rise in South Africa

SABRIC (South African Banking Risk Information Centre) reports that although overall financial crime losses declined (from ~R3.3 billion in 2023 to ~R2.7 billion in 2024), there is a marked rise in AI-enabled fraud and social engineering-based scams. Techniques such as deep fakes, voice cloning, fake applications, and AI-generated phishing content are becoming more common. This trend suggests that traditional fraud detection systems may no longer be sufficient as the fraudsters’ tools improve rapidly. Increased investment in AI-based detection, consumer education, and tighter regulation of synthetic identity use will likely be critical if South Africa wants to stay ahead.

Kenyan High Court exempts Fintechs from VAT in Landmark ruling

In a significant decision, the Kenyan High Court has ruled that fintech companies providing payment facilitation are entitled to VAT exemption, even when not licensed under the Banking Act, so long as they perform functions equivalent to financial institutions. The ruling could level the playing field with banks and mobile money platforms and reduce compliance costs for small and medium fintechs. 

Bank of Ghana suspends operating licenses for Flutterwave and 7 others

The Bank of Ghana has suspended remittance partnerships of five Money Transfer Operators and three Payment Service Providers . The action follows breaches of the Updated Guidelines for Inward Remittance Services by Payment Service Providers, 2023.  Ghana is by this action, sending a message that non-compliance in remittance and forex channels won’t be tolerated. 

Zambia gets $120m from the World Bank to build Digital Infrastructure

Zambia has secured financing from the World Bank to build digital infrastructure. This investment is a strong signal for what “digital readiness” could look like in sub-Saharan Africa. If Zambia pulls this off, it could serve as a blueprint for similar economies aiming to accelerate digital transformation under tight fiscal constraints.

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Across The World

AI regulation gains momentum as California enacts new law.

California has enacted the Transparency in Frontier Artificial Intelligence Act, making it the first State in the U.S. to require large AI firms to publicly disclose how they guard against catastrophic risks. The Law also requires firms to report safety incidents within 15 days and adopt whistleblower protections.  This is a clear signal that AI regulation is entering a new phase. In the future, it’s likely that lawmakers will require more transparency and accountability.

China lures Techies with new KI Visa after US hiked H-IB visa fees to $100,000

In response to the U.S. raising the cost of new H-1B visa applications to $100,000, China announced a new “K Visa” for STEM professionals, effective October 1. The new visa will feature multiple entries, longer validity, and most importantly, no requirement for a local employer invitation. This is a bold talent-war move. China is signaling that it will compete aggressively for global tech talent, especially where U.S. policy becomes a barrier. The question is  how will China address intellectual property, regulatory, and national security risks associated with an influx of foreign technologists?

FCA convicts an Individual for Data Protection breach

The U.K. Financial Conduct Authority (FCA) has successfully prosecuted Nicholas Harper, who pleaded guilty to “encouraging or assisting” a breach of the Data Protection Act. While a jury acquitted him of conspiracy to defraud and conducting regulated activity without authorization, Harper was fined £100 and ordered to pay a £30 victim surcharge. This case stands out in the fintech sector, as it’s a rare example of an individual held accountable for a data protection violation. 

Google petitions US Supreme Court to pause Epic Playstore ruling

Google has petitioned the U.S. Supreme Court to pause a lower-court injunction that would force it to overhaul its Play Store rules. The ruling mandates Google to allow third-party app stores, remove billing restrictions, and open access to its catalog. Google is claiming that abrupt enforcement would inflict “irreparable harm” on both the Android ecosystem and millions of developers and users. As this plays out, all eyes are on whether the Court will intervene and what this means for global app store regulation.

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Global Crypto

Google embeds stablecoin payments into AI apps

Google has launched a new open-source payments protocol (AP2) that enables AI applications to send and receive payments (including stablecoins) in partnership with Coinbase, the Ethereum Foundation, and over 60 industry players. The protocol, which builds on Google’s agent-to-agent (A2A) infrastructure, introduces an extension (x402) to support one-tap stablecoin settlement.

This marks a major step towards the merging of autonomous AI systems and money flows, by  embedding stablecoin rails directly into AI workflows, Google is reducing friction in digital transactions where agents may act without constant human oversight. But it also raises new questions: How will regulators respond to “agent-initiated payments”? Who bears liability if an AI misuses funds? And how will anti-money laundering guardrails adapt to this emerging architecture?

Crypto platforms now included in EU Sanctions

For the first time, the EU has explicitly included cryptocurrency platforms in its sanctions regime, with the 19th package targeting Russian transactions with alternative payment systems. This signals that digital assets are now squarely part of global financial geopolitics. However, it’s clear that enforcement won’t be simple, Just like we saw with the recently hacked Iranian crypto exchange, “Nobitex” , sanctioned entities can quickly spin up new anonymous wallets, thus leaving compliant exchanges unknowingly exposed until clustering tools catch up to identify the real owners. A tougher compliance question which no guidance has yet resolved is this:  Will lawful platforms  bear liability for exposures that only become visible after attribution by clustering tools? 

Canadian Law enforcement recovers $56m in largest crypto seizure

The Royal Canadian Mounted Police (RCMP) has seized more than CAD 56 million in crypto assets tied to the trading platform TradeOgre, marking the country’s largest crypto seizure to date. The platform was unregistered with FINTRAC and allegedly facilitated anonymous, illicit fund flows. This is a watershed in digital asset enforcement. Canada is now sending a clear signal that crypto is firmly within its criminal justice radar.

CFTC to allow Stablecoin as collateral in derivatives market

 The U.S. Commodity Futures Trading Commission (CFTC) has proposed a pilot program to allow tokenized non-cash collateral, including stablecoins, in derivatives markets. The move is part of the broader digital asset markets pilot initiative, intended to expand permissible collateral types and bring crypto rules closer to traditional finance.If adopted, this could be a major shift: stablecoins could begin functioning more like traditional securities or money-market instruments in derivatives ecosystems. That said, credible reserve backing, collateral valuation, settlement risk, and counterparty regulation will be critical hurdles.

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Deals & Raises

1. Telo raises $20m to build tiny electric trucks for cities.
2. SEON closes $80m Series C funding for AI Product Development and Talent Acquisition.
3. Netskope raises almost $1bn in US IPO
4. Kredete raises $22m series to expand credit building infrastructure with stablecoins transfers
5. Juicebox raises $30M from Sequoia to revolutionize hiring with LLM-powered search

Mergers & Acquisition

1. Nexamont acquires 21.4% Stake in Royal Exchange Plc valued at N3.6 billion
2. Egyptian e-health marketplace Duaya acquires SaaS provider EXMGO
3. South African mobile payments company Street Wallet acquires Digitip
4. OpenAI to acquire Product testing Startup StartsIg for $1.1 billion
5. Leadway Holdings announces acquisition of PAL Pensions

Join the Conversation:

Do 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. 

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.

REGCOMPASS AUGUST REGULATORY ROUNDUP

Table Of Content

Regulatory Update in Nigeria

• Nigeria’s NIMC finalises  new e-identity platform (NINAuth)
• NDPC Targets 1,369 Nigerian Firms for Compliance Checks
• CBN Restricts Operations of PoS Terminals to Within 10 Metres of Registered Locations
• CBN Mandates Banks to Adopt ISO 20022 Payments Standard
• FIRS Onboards 1,000 Businesses onto E-Invoicing System
• Globacom Under NCC Scrutiny Over CEO’s Role
• MTN & Airtel Deploy $400M Cloud Infrastructure to Support Startups
• FCCPC releases Digital Lending Regulation in Nigeria 
• President Bola Tinubu has signed the Nigerian Insurance Industry Reform Act (NIIRA) 2025 into law

Across Africa 

• The Central Bank of Kenya (CBK) publishes Guidance Notes on CDD, Beneficial Ownership, and PEPs for financial institutions
• Ethiopia bans four US-based remittance companies
• South Africa considers 24-hour trading on Stock Exchange
• Truecaller draws scrutiny in South Africa
• Kenya’s Central Bank fines 11 banks
• Kenya’s Central Bank lowers benchmark rate for lending 
• South Africa’s consumer watchdog hunts Temu and Shein
• Ghana hits MultiChoice with a daily $920 fine
• Somalia approves new bill against cybercrime
• Safaricom Launches Hourly Data Bundles
• Cell C gets approval to buy back its customer base

Crypto Scoop: 

• Mastercard is opening a stablecoin settlement using USDC
• U.S. banks push to curb stablecoin “interest” as GENIUS Act takes hold
• SEC and KSG Partner with Busha to Launch Crypto Training for Financial Leaders

Deals and Raises

• Chowdeck raises $9 million Series A
• Yamify raised $100k to build appstore for AI tools
• Airtel Commits $120M to Hyperscale Data Centre in Lagos
• TransBnk (Fintech) raised $25 million in a Series B
• Kiwi (Fintech) secured $24 million in a Series B round
• Nigeria’s Premium Trust Bank completes $131 million capital raise
• Koolboks raises $11M to cool Africa’s small businesses
• Ghana’s Complete Farmer secured $5 million
• Kenya’s Poa Internet secured $4 million in debt funding

Mergers and Acquisitions

• Titan Trust Bank acquires Union Bank in a takeover deal
• Vodacom gets green light to acquire Maziv
• South Africa’s Nedbank gets approval to acquire iKhoka
• HearX secured a $100 million raise through its merger with U.S. based Eargo

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Regulatory Update In Nigeria

NDPC Targets 1,369 Nigerian Firms for Compliance Checks

The Nigeria Data Protection Commission (NDPC) has commenced a sector-by-sector investigation into 1,369 organisations suspected of violating the Nigeria Data Protection Act (NDPA) 2023. The move underscores NDPC’s growing focus on compliance enforcement as businesses across industries adapt to the country’s new data protection regime.

CBN Restricts Operations of PoS Terminals to 10 Metres of Registered Locations

The Central Bank of Nigeria (CBN) has introduced mandatory geo-tagging controls for all Point-of-sale terminals (POS). The directive specifies that terminals be limited to a 10-metre radius of their registered business address. This restriction is an effort to address the rising financial crime risks associated with the ease of movement of the product, including Terrorist financing, extortion, e.t.c

CBN Mandates Banks to Adopt ISO 20022 Payments Standard

The Central Bank of Nigeria (CBN) has instructed banks, mobile money operators, super agents, and other licensed payment providers to adopt the ISO 20022 payment messaging standard and geo-tag all Point-of-Sale (PoS) terminals by October 31, 2025. 

President Bola Tinubu has signed the Nigerian Insurance Industry Reform Act (NIIRA) 2025 into law 

The Nigeria Insurance Industry Reform Act (NIIRA) 2025 has been signed into law, introducing sweeping changes to strengthen the insurance sector. The Act addressed the industry’s pressing need for a dynamic and modern framework to align with Nigeria’s evolving economic landscape. Key provisions in NIIRA enforce compulsory insurance policies and introduce comprehensive regulations for technology-driven insurance providers, including fintechs. 

FIRS Onboards 1,000 Businesses onto E-Invoicing System

The Federal Inland Revenue Service (FIRS) has announced that more than 1,000 companies, representing about 20% of the 5,000 eligible firms, have begun integrating with its new electronic invoicing (e-Invoicing) platform. The initiative marks a major step in the agency’s efforts to modernize tax administration, streamline compliance, and improve transparency in Nigeria’s revenue system.

Globacom Under NCC Scrutiny Over CEO’s Role

The Nigerian Communications Commission (NCC) has directed Globacom to split the roles of CEO and chairman within 24 months, under its 2025 Guidelines on Corporate Governance. The rules require the chairman to be a non-executive director, bar anyone from holding both positions, and mandate independent board members with ICT expertise. Globacom remains the only major operator yet to comply, with founder Mike Adenuga still serving as both chairman and CEO.

MTN & Airtel Deploy $400M Cloud Infrastructure to Support Startups

MTN and Airtel have announced a joint investment of nearly $400 million (₦613.8 billion) to expand into cloud computing and artificial intelligence infrastructure. The move signals a strategic shift beyond voice and data, positioning both operators as core infrastructure providers for startups. Their ambition is to become the go-to choice for Nigerian startups in a market still dominated by global giants like AWS, Google Cloud, and Microsoft Azure.

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Regulatory Update Across Africa

The Central Bank of Kenya (CBK) publishes Guidance Notes on CDD, Beneficial     Ownership, and PEPs for financial institutions

The Central Bank of Kenya (CBK) has published new guidance notes for financial institutions covering Customer Due Diligence (CDD), Beneficial Ownership, and Politically Exposed Persons (PEPs). The notes provide clarity on regulatory expectations, helping banks and other licensed entities identify, assess, and manage risks associated with high-risk customers, complex ownership structures, and politically exposed individuals. 

Ethiopia bans four US-based remittance companies

The National Bank of Ethiopia (NBE) has banned four U.S.-based money transfer companies, accusing them of operating without licences and engaging in unauthorised cross-border transactions

South Africa considers 24-hour trading on Stock Exchange

The Johannesburg Stock Exchange (JSE), Africa’s largest bourse, is considering the introduction of 24-hour trading as it seeks to align more closely with global market practices and boost competitiveness. JSE CEO Leila Fourie confirmed that the proposal is under review, with consultations underway among market participants before a medium- to long-term decision is made.

Truecaller draws scrutiny in South Africa

South Africa’s Information Regulator has launched an investigation into call-screening app Truecaller after receiving complaints from businesses and individuals alleging potential violations of the Protection of Personal Information Act (POPIA) and harm to their operations.

Kenya’s Central Bank fines 11 banks

The Central Bank of Kenya (CBK) has fined 11 commercial banks and forex bureaus a total of Ksh191 million in 2024 for breaching lending, capital adequacy, and governance regulations, as part of its push to strengthen compliance and drive cheaper credit in the sector.

Kenya’s Central Bank lowers   benchmark rate for lending 

The Central Bank of Kenya (CBK) has lowered its benchmark lending rate for the seventh consecutive time, cutting the Central Bank rate by 25 basis points at its Monetary Policy Committee (MPC) meeting on August 12, 2025.

South Africa’s consumer watchdog hunts Temu and Shein

Consumer Goods and Service Ombud (CGSO) CEO Queen Munyai has urged the government to act against foreign e-commerce giants Shein and Temu, citing rising online complaints and weak enforcement powers. Despite Temu’s 2023 warehouse support, both platforms lack a physical presence, limiting CGSO’s jurisdiction. Together, they now control 37.1% of South Africa’s clothing market.

Ghana hits MultiChoice with a daily $920 fine

Ghana’s Ministry of Communication, Digital Technology, and Innovations has imposed a daily fine of $920 on MultiChoice Ghana, operator of DStv, for failing to provide requested subscription pricing data.

Somalia approves new bill against cybercrime

Somalia’s Cabinet has approved a new Cybercrime Bill aimed at boosting digital security and tackling online crime. Presented by the Minister of Communications and Technology, the legislation seeks to protect computer systems and networks, curb illegal use of technology, and support the investigation and prosecution of cyber offenses.

Safaricom Launches Hourly Data Bundle

Safaricom, Kenya’s largest telco, has rolled out B-Live, a new data product that lets customers buy internet access by the hour instead of by megabytes or gigabytes. The bundles cost between KES 20 ($0.16) for one hour and KES 150 ($1.16) for six hours, with usage tied strictly to time. The launch directly addresses one of Kenyans’ biggest frustrations that data bundles run out too quickly or unpredictably, marking Safaricom’s boldest attempt yet to change how customers pay for mobile internet.

Cell C gets approval to buy back its customer base

South Africa’s Competition Tribunal has granted approval for Cell C to repurchase its contract customer base from majority shareholder Blue Label Telecoms. The transaction enables Cell C to reclaim control of Comm Equipment Company (CEC), the subsidiary responsible for managing its postpaid customers.

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Crypto Scoop

Mastercard is opening a stablecoin settlement using USDC

Mastercard and Circle have expanded USDC (United States Dollar Coin) settlement capabilities for merchants and acquirers across EEMEA (Eastern Europe, Middle East, and Africa). Arab Financial Services and Eazy Financial Services are the first to adopt USDC for settlements, as Mastercard continues supporting multiple regulated stablecoins worldwide.

U.S. banks push to curb stablecoin “interest” as GENIUS Act takes hold

US banking groups are urging Congress to close a GENIUS Act loophole that permits stablecoin yields via affiliates and exchanges. They warn that as much as $6.6 trillion could migrate from banks to stablecoins, threatening lending capacity and driving up interest rates.

SEC and KSG Partner with Busha to Launch Crypto Training for Financial Leaders

Nigeria’s SEC, through its Nigerian Capital Market Institute (NCMI), has teamed up with the Kenya School of Government (KSG) and crypto startup Busha to roll out a cryptocurrency training program. The course will be developed and facilitated by Cambridge Enterprise, part of Cambridge University, and is designed for financial institution leaders and policymakers, focusing on digital assets and their role in expanding financial access.

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Deals And Raises

1. Chowdeck raises $9 million Series A
2. Yamify raised $100k to build appstore for AI tools
3. Airtel Commits $120M to Hyperscale Data Centre in Lagos
4. TransBnk (Fintech) raised $25 million in a Series B
5. Kiwi (Fintech) secured $24 million in a Series B round
6. Nigeria’s Premium Trust Bank completes $131 million capital raise
7. Koolboks raises $11M to cool Africa’s small businesses
8. Ghana’s Complete Farmer secured $5 million
9. Kenya’s Poa Internet secured $4 million in debt funding

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Mergers and Acquisitions

1. Titan Trust Bank acquires Union Bank in a takeover deal
2. Vodacom gets green light to acquire Maziv
3. South Africa’s Nedbank gets approval to acquire iKhoka
4. HearX secured a $100 million raise through its merger with U.S. based Eargo

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Join The Conversation

Do 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.  

For a deeper 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.

REGCOMPASS JULY REGULATORY ROUNDUP

July truly made a statement! 

The global adoption of the GENIUS Act has kicked off a new era for digital assets, opening the door for stablecoin use all over the world, with more countries likely to jump on board soon. 

In this edition of Regcompass’s regulatory roundup, we have carefully curated the latest and most important regulatory news from Nigeria, Africa, and beyond. 

Happy reading!

In This Edition

Regulatory Update in Nigeria

• CAC joins the AI train, launches AI Portal
• SEC announces plans to launch USSD codes to verify licensed capital market operators. 
• CBN Reforms Boost Naira, Restore International Card Partnerships
• CAC extends  implementation of the new fee schedule to September 1.
• NDPC Fines MultiChoice ₦766M for Data Breach
• NCC Introduces ₦10M Licence for Bulk SMS Providers
• FIRS launches real-time portal to monitor VAT transactions 
• EFCC reaffirms commitment to seamless SCUML Certification process
• NIMC issued warning against the sale of National Identity Numbers

Regulatory Updates Across Africa

• Ethiopia Approves Startup Law, Reserves 5% of ICT Contracts for Local Innovators
• South Africa Turns to AI to Recover $110B in Unpaid Taxes
• Bank of Ghana Tells Crypto Firms to Register Ahead of New Rules
• South Africa Plans New Rules for Streaming and Media 
• Ghana Revamps SIM Rules and Advances Startup Bill
• South Africa Targets October Exit from FATF Grey List
• Cameroon Fines MTN and Orange $4.6M Over Poor Service Quality
• Ethiopia Launches First Domestic Credit Card
• Visa Launches First African Data Centre in South Africa

Regulatory Updates Across The World

• Meta Rejects EU’s AI Code, Citing Legal Risks and Overreach
• FATF Flags Rising Terrorist Financing Risks, Calls for Stronger Global Response

Crypto Scoop

• US Approves First National Crypto Law, Sets Stablecoin Standards
• Western Union explores stablecoins for faster remittances
• New Zealand to ban crypto ATMs, cap international cash transfers

Regulatory update in Nigeria

CAC joins the AI train, launches AI Portal

The Corporate Affairs Commission (CAC) is joining the AI train as it launches its AI-powered registration portal which is already processing over 11,000 transactions a day, despite ongoing technical issues. We can reasonably expect increased speed, improved security and ease of business set-up in coming days. 

SEC announces plans to launch USSD codes to verify licensed capital market operators. 

A new tool is on the horizon to help Nigerians steer clear of fraudulent investment outfits – a USSD-based system that lets users confirm a firm’s registration status with the SEC in seconds. Though not yet live, the initiative signals a shift toward greater transparency and public protection. But with all this emphasis on visibility, one can’t help but wonder: where does this leave actual regulatory crackdowns? 

CBN Reforms Boost Naira, Restore International Card Partnerships

Following a prolonged suspension caused by severe dollar shortages and restricted FX access, the return of international card payments is enabled by improved forex liquidity and CBN’s reforms, scrapping currency controls and boosting dollar inflows into the economy. Currently, most banks have set the  monthly and quarterly limits between $500 and $1,000. 

CAC extends  implementation of the new fee schedule to September 1.

The Corporate Affairs Commission has  postponed the implementation of its revised fee and penalty structure on its upgraded registration portal from August 1 to September 1.  The postponement follows user complaints regarding document downloads, payment processing, and post-incorporation filings.

NDPC Fines MultiChoice ₦766M for Data Breach

MultiChoice Nigeria has been fined ₦766 million by the NDPC for violating data protection laws, including transferring user data across borders without proper consent. The NDPC found its practices intrusive, even affecting non-subscribers, and ruled the company’s response “unsatisfactory.” The fine signals a clear warning: platforms handling Nigerian data must comply or face similar consequences.

NCC Introduces ₦10M Licence for Bulk SMS Providers

The Nigerian Communications Commission (NCC) has renewed its regulatory approach for bulk SMS providers with the introduction of a mandatory ₦10 million, five-year license for businesses sending Application‑to‑Person (A2P) messages, including bank alerts and promotions. While Nigeria has previously operated under telecom licensing frameworks such as for Mobile Virtual Network Operators (MVNOs) and value‑added service providers, this new rule represents the first specific regime targeting international bulk SMS traffic, centralising routing through NCC‑approved channels for enhanced oversight and revenue protection

FIRS launches real-time portal to monitor VAT transactions 

The Federal Inland Revenue Service has launched a Transaction Monitoring System to increase transaction visibility and plug tax leaks. This development is a response to the burgeoning digital economy, and it gives the FIRS real-time visibility into VAT-eligible transactions and where deductions apply.  

EFCC reaffirms commitment to seamless SCUML Certification process

The Economic and Financial Crimes Commission, EFCC, has clarified that the SCUML registration portal remains fully functional, following concerns raised in The Vanguard’s July 29, 2025 editorial. The Commission noted that the portal processes an average of 600 applications daily, with certificate issuance timelines now reduced to 2–3 days for complete submissions. It explained that error messages cited in the editorial typically result from applicants uploading incorrect or incomplete documentation or using invalid email addresses. In response, SCUML is intensifying public sensitization efforts, including upcoming multilingual digital animations and renewed media campaigns. The Commission reaffirmed its commitment to service excellence and continuous improvement and urged stakeholders to rely on verified information when evaluating its processes.

NIMC issued warning against the sale of National Identity Numbers

The National Identity Management Commission (NIMC) has warned Nigerians against selling their National Identification Numbers (NINs) for as little as ₦2,000, citing serious risks of fraud, impersonation, and criminal exposure. In a post on X, the agency stressed that individuals, not the Commission, bear responsibility for protecting their digital identities. Rising poverty and poor digital literacy have made many vulnerable to such risks, with fraudsters using stolen NINs to open bank accounts, take loans, or commit crimes. NIMC’s alert underscores the urgent need for stronger public awareness and enforcement of Nigeria’s data protection laws.

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Across Africa: Welcoming Innovation While Addressing Challenges

Ethiopia Approves Startup Law, Reserves 5% of ICT Contracts for Local Innovators

Ethiopia has passed its long-awaited Startup Business Proclamation, marking a major milestone for its tech ecosystem. The new law provides a legal definition for startups, streamlines registration, offers tax incentives, and introduces a ₿2 billion (~$36M) Startup Fund.

South Africa Turns to AI to Recover $110B in Unpaid Taxes

South Africa’s tax agency, SARS, is using AI and a new command centre to recover R2 trillion (~$110 billion) in taxes and fix its budget gap. The system helps find people most likely to pay, with a 1,500-person team chasing R35 billion in unpaid taxes. SARS now tracks tax payments, staff activity, and delays in real time. With a R7.5 billion boost in funding, SARS hopes to collect up to R50 billion more this year and even R460 billion yearly in the future. This marks a big step in using tech to improve tax collection after years of underperformance.

Bank of Ghana Tells Crypto Firms to Register Ahead of New Rules

Ghana’s central bank has asked all Virtual Asset Service Providers (VASPs) to register by 15 August as it ramps up efforts to regulate the crypto space. The Bank of Ghana (BoG) says this is not a licensing process yet –  it just wants to identify players ahead of full regulation.

South Africa Plans New Rules for Streaming and Media 

South Africa is updating its media laws to better reflect how people consume content today. A new draft white paper released on July 19 proposes modern rules for TV, radio, streaming platforms like Netflix and YouTube, and even social media. The plan aims to improve online safety, update broadcaster oversight, and align with global trends. If approved, it could shape what South Africans watch and how it’s regulated.

Ghana Revamps SIM Rules and Advances Startup Bill

Ghana has rolled out a new phased SIM registration regime, integrating biometric verification and business SIM validation to combat fraud and enhance digital security. The reforms, effective July 1, link telecom systems with the Ghana Revenue Service and follow major crackdowns by the Cybersecurity Authority.

Meanwhile, Ghana’s Startup Bill set for passage by December promises tax breaks, simplified compliance, and a dedicated Innovation Agency. The reforms align with Ghana’s broader digital agenda and its hosting of the Global Entrepreneurship Festival in November, underscoring its ambition to become West Africa’s tech hub.

South Africa Targets October Exit from FATF Grey List

South Africa is on track to exit the Financial Action Task Force (FATF) grey list by October 2025, following significant reforms to address deficiencies in anti-money laundering (AML), counter-terrorist financing (CFT), and illicit financial flows.Flagged in February 2023, South Africa has since completed most of the required actions. An FATF assessment team is expected to visit this month to confirm the sustainability of the reforms. 

Cameroon Fines MTN and Orange $4.6M Over Poor Service Quality

Cameroon’s Telecommunications Regulatory Board (TRB) has fined MTN and Orange a combined $4.6 million for failing to meet network coverage and service quality obligations. The penalties follow inspections across major cities and transit corridors that revealed significant performance gaps.

Orange Cameroon received the highest fine $2.5 million plus an additional $357,600 for pricing and VAS-related breaches—while MTN was fined $1.8 million. This enforcement echoes a 2023 crackdown and forms part of the government’s broader telecom reform agenda under Vision 2035.

Ethiopia Launches First Domestic Credit Card

Ethiopia has rolled out its first locally issued credit card through a partnership between SanuPay and Belgian fintech OpenWay. The card, powered by the Way4 platform, will run on Ethiopia’s national payment switch, enabling full interoperability across banks, ATMs, and POS systems.This marks a shift from the country’s heavy reliance on cash and mobile money (like Telebirr) toward more traditional digital payment tools. The move aims to boost financial inclusion, reduce dependency on foreign card networks, and modernise Ethiopia’s payment infrastructure.

Visa Launches First African Data Centre in South Africa

Visa has opened its first African data centre in Johannesburg, aimed at boosting transaction speed, regulatory compliance, and digital payments infrastructure across the continent.

The move comes as regional regulators increasingly demand data localisation, and as fintech ecosystems in markets like Nigeria, Kenya, and South Africa push for cross-border payment innovation.

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Across the World

Meta Rejects EU’s AI Code, Citing Legal Risks and Overreach

Meta has refused to sign the EU’s voluntary AI Code of Practice just weeks before new AI rules take effect. The company says the code creates legal uncertainty and goes beyond the AI Act’s scope. Meta’s global affairs chief, Joel Kaplan, criticized the EU’s approach, warning it could slow innovation and hurt European AI startups. Despite pressure from major tech firms, the EU says it won’t delay its timeline. Key rules for high-risk AI systems and general-purpose models are expected to take effect from 2 August 2025.

FATF Flags Rising Terrorist Financing Risks, Calls for Stronger Global Response

A new report from the Financial Action Task Force (FATF) reveals a concerning increase in terrorist financing (TF) threats, coupled with a limited global capacity to combat them. The report indicates that terrorists are rapidly adapting, leveraging digital tools, decentralized methods, and even gaming platforms to fund their operations.

Despite ongoing efforts, 69% of assessed countries continue to struggle with effectively investigating and prosecuting TF cases. The report highlights emerging trends such as the rise of lone actors, the blurring lines between legal and illegal funding sources, and growing connections to organized crime. The FATF urges enhanced global cooperation, improved public-private partnerships, and the adoption of practical indicators—including payment patterns, travel activity, and social media behavior—to detect TF activities.

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Crypto Scoop

US Approves First National Crypto Law, Sets Stablecoin Standards

On July 18 2025, President Trump signed the GENIUS Act into law.  The law creates a national framework for regulating stablecoins and marks a major step toward mainstream adoption. Under the Act, stablecoins must be backed 1:1 by cash or safe assets like the U.S. Treasuries, with monthly reserve reports required. Both banks and nonbanks can issue stablecoins if they register with regulators.

A companion bill, the CLARITY Act, is in the works to address securities rules and anti-financial crime measures. While the crypto industry welcomes the move, critics warn the law may fall short on consumer protections.

Western Union explores stablecoins for faster remittances

Western Union is considering the use of stablecoins for international money transfers and digital wallets, with ongoing talks to build crypto on- and off-ramps. The move targets faster settlements and currency stability in high-inflation markets. Western Union has tested stablecoin-based settlements in Africa and South America and filed crypto trademarks since 2022.

New Zealand to ban crypto ATMs, cap international cash transfers

New Zealand will ban all 221 crypto ATMs nationwide and introduce a NZ$5,000 limit on international cash transfers to curb money laundering. Associate Justice Minister Nicole McKee said the move targets criminal abuse of cash-to-crypto services. The ban mirrors similar measures in Australia, where crypto ATMs are now subject to tighter limits, customer checks, and scam warnings.

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Deals and Raises

1. Swedish AI Startup Lovable Hits Unicorn Status with $200M Raise
2. Ora Technologies Raises $7.5M to Accelerate Moroccan Superapp Ambitions
3. BFREE Secures $3M to Scale Ethical Debt Recovery Across Africa
4. PocketLawyers Lands Funding to Scale AI Legal Tools Across Africa
5. Nigeria’s Carrot Credit Raises $4.2M to Expand Asset-Backed Lending
6. CANAL+ Group acquires South Africa’s MultiChoice Group for ZAR 55bn (USD 3bn) 
7. Sun King Raises $156M to Boost Solar Access for 1 Million+ Kenyans

Mergers and Acquisitions

1. Meta Acquires Play AI to Boost Voice Capabilities in AI and Wearables
2. Grammarly Acquires Superhuman to Accelerate AI Productivity Integration
3. South Africa Approves Canal+ $2B Acquisition of MultiChoice
4. Nigerian Startup Payaza Repays ₦14.9B Commercial Paper
5. Egypt Sees First Fintech SPAC as Catalyst Partners Acquires Qardy for $23M

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Join the Conversation
Have questions or insights about the regulatory landscape in your region? Connect with us via our social media channels or email; we’re here to help.  For a deeper dive into past regulatory changes, catch up on our June Regulatory Roundup and explore our complete Regulatory Roundup Archive for more material

Share your thoughts in the comments  and let’s keep the conversation going.

Disclaimer: The information in this article is for general informational purposes only and does not constitute legal advice. For guidance tailored to your specific circumstances, please consult a qualified legal professional.

Welcome to Regcompass Regulatory Roundup June Edition

Welcome to our June Regulatory Roundup from Regcompass. In this Regcompass Regulatory Update, we bring you the very latest regulatory news and insights across Nigeria, Africa, and beyond. Let’s dive into a thoughtful and comprehensive overview of recent developments shaping the compliance and business landscape.

This edition features a curated look at key regulatory, policy, and market shifts – from new tax laws, financial sector reforms, and fintech innovations specifically impacting Nigerian regulatory trends, to digital payment frameworks and crypto advances across Africa. We also highlight important global regulatory trends that could influence your strategies. Our roundup is designed to keep you informed, help you navigate an evolving regulatory environment, and support your strategic decision-making.

Here’s what’s inside this month’s update:

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News in Nigeria

The Federal Government enacts new tax laws

The Federal Government has announced the enactment of comprehensive new tax laws aimed at broadening the tax base, simplifying compliance for businesses, and enhancing government revenue generation. The new legislation introduces changes to various tax categories, including corporate income tax, value-added tax, and excise duties, alongside provisions for digital economy taxation. 

Federal Government to link credit scores to National Identification Number (NIN)  

The  Nigerian Consumer Credit Corporation (CREDICORP) has issued a new policy mandating Nigerians to  link their  NIN number to their credit scores. This way all credit information across different financial institutions will be situated in a centralized national credit bureau.

NIPOST races to become  fintech

Nigerian Postal Service (NIPOST) is rapidly accelerating its transformation into a major player in global digital payments, holding both a Super Agents License and an International Money Transfer Operator’s license, this strategic move by NIPOST aims to bolster national efforts in fostering financial inclusion, particularly within underserved regions. In light of this, how can NIPOST reconcile its dual role as operator and regulator without compromising its universal service obligation? Further, how can NIPOST effectively enforce regulations on competitors while also competing directly against them?

CBN issues Routine Transitional Guidance  

The Central Bank of Nigeria has issued Routine Transitional Guidance for institutions  still completing their transition from the temporary regulatory support provided, mostly in response to the economic impact of the COVID-19 pandemic. 

CBN suspends dividends, bonuses and foreign investments for banks under regulatory forbearance

The Central Bank of Nigeria has issued a directive instructing banks operating under regulatory forbearance to suspend dividend payments, defer bonuses for executives, and halt investments in foreign subsidiaries or offshore ventures. This measure is a strategic move to reinforce capital buffers, improve balance sheet resilience, and ensure prudent capital retention within the banking sector. 

SEC bans Independent Director Transmutation 

The Securities and Exchange Commission (SEC) has issued a directive that Public Companies and key Capital Market Operators can no longer convert Independent Executive Directors (INEDs) into Executive Directors within the same company or its Group. This directive takes immediate effect, and compliance is mandatory.

SEC ramping up public notices against unregistered  trading and investment platforms 

The Securities and Exchange Commission (SEC) warns the public about unregistered trading and investment platforms such as Zugacoin, Samzuga GPT, CM trading and Value Growth platform. The Commission clarifies that the promoters or issuers of these platforms are not registered to operate in the Nigerian Capital Market, nor have they received SEC approval for public issuance. The public is strongly advised to avoid engaging with these platforms and to perform their due diligence before participating in any investment scheme.

CAC reviews service fees effective 1 August

The Corporate Affairs Commission (CAC) is set to review certain service fees, effective August 1, 2025. This decision stems from a careful assessment of current economic realities and increasing operational costs, alongside extensive engagement with key stakeholders. According to the  CAC, this adjustment will enable it to continue delivering prompt, efficient, and technology-driven services, meeting stakeholder expectations and benefiting the Nigerian economy.

NIBSS unveils National Payment Stack 

The Nigeria Inter-Bank Settlement System (NIBSS) has officially launched the National Payment Stack (NPS), set to revolutionize Nigeria’s instant payment ecosystem. This initiative builds upon the success of NIBSS Instant Payments (NIP) and aims to deepen financial inclusion, catalyze innovation in digital payments, and enhance government collections. As the digital economy expands, the NPS will provide secure, resilient, and forward-looking infrastructure, aligning with Nigeria’s ambition for a $1 trillion economy.

Across Africa: Welcoming Innovation While Addressing Challenges

Central Bank of Kenya extends digital payment hours 

The Central Bank of Kenya (CBK) is set to extend the operating hours for its Real-Time Gross Settlement (RTGS) system, known as the Kenya Electronic Payment and Settlement System (KEPSS). Starting 1 July 2025, KEPSS will operate from 7 AM to 7 PM on business days, a significant increase from its current 8:30 AM to 4:30 PM schedule. This move signals a shift in Kenya’s approach to time-sensitive digital transactions, enabling real-time settlement across longer windows.

Kenya  proposes taxing startup employee shares at vesting

Kenya’s Finance Bill 2025 is proposing the removal of the tax deferral on Employee Share Ownership Plan (ESOPs). This taxation would occur at the point of vesting, potentially burdening employees with tax liabilities before realising any financial gain. There are concerns that the proposal raises additional complications for founders and employees. Currently, dividends from such shares are subject to a 5% withholding tax and if the shares are not traded on the Nairobi Securities Exchange, employees may face capital gains tax when selling. This approach may force start ups to phase out ESOPs(Employee Stock Option Plans)

Ethiopia mandates digital payment integration 

In line with the Digital Ethiopia 2025 strategy, government institutions at all levels are now mandated to support all approved digital payment providers. This directive, effective within 90 days of issuance, signals a shift from optional to compulsory digital payment integration across public services. The move aims to strengthen digital payment regulation and deepen financial inclusion throughout Ethiopia. 

Central Bank of Kenya (CBK) Licenses 41 additional Digital Credit Providers

The Central Bank of Kenya (CBK) has licensed 41 additional Digital Credit Providers (DCPs) under Section 56(2) of the CBK Act. This brings the total number of licensed DCPs to 126. This move aims to ensure compliance with relevant laws and, more importantly, protect consumer interests. Other applications are still under review, awaiting necessary documentation. The CBK is urging applicants to respond quickly to speed up the evaluation process.

Flutterwave secures a Payment Service Provider (PSP) License in Cameroon

Flutterwave has secured approval to operate as a licensed payment service provider in Cameroon, strengthening its growing African presence and regulatory strategy. With this new license, Flutterwave is set to deepen financial inclusion and facilitate seamless transactions for merchants and consumers in Cameroon. This move represents a critical step towards unifying Africa’s fragmented payment landscape.

Across the World

UK Launches the Smart Data Group to expand Open Banking

The UK government has officially launched the Smart Data Group, a new cross-sector initiative. This follows the passage of the Data (Use and Access) Bill in Parliament and aims to extend the significant benefits of open banking to other key industries, including energy, telecommunications, retail, and finance.

Interpol urges Nigerians to tackle AI deepfake threats 

The International Policing Agency (Interpol) is urging Nigerian professionals and global counterparts to join the fight against the rapidly growing threat of synthetic media. This includes deepfakes and AI-generated voice clones, which are being used to defraud and destabilize societies. This initiative marks a step toward strengthening international capacity to combat AI-driven manipulation, a rising risk to digital trust. 

FATF publishes new guidance on Financial Inclusion, Anti-Money Laundering and Terrorist Financing

The Financial Action Task Force (FATF) has released new guidance encouraging a proportionate, risk-based approach to anti-money laundering (AML), counter-terrorist financing (CTF), and counter-proliferation financing (CPF). This aims to help countries and the private sector integrate more people into the formal financial system. The guidance directly impacts national AML/CFT frameworks, raising expectations for businesses to strengthen their compliance programs.

Crypto Scoop

Visa and Yellow card Partner to expand stable coin payment solution in Africa

Yellow Card, a licensed stablecoin payments provider, has announced a partnership with Visa. This collaboration aims to enhance cross-border transactions and strengthen financial infrastructure across over 20 countries in Africa and other emerging markets. The partnership underscores Yellow Card’s growing role as a crucial financial infrastructure provider in these regions.

India cracks down on crypto tax evaders, seizes $327,000

India is intensifying its efforts against crypto tax evasion, leading to the seizure of $327,000. This crackdown follows the discovery of discrepancies between taxpayer-reported information and data from digital asset platforms and Tax Deducted at Source (TDS) returns. This move signals the end of regulatory leniency, paving the way for serious industry innovation and the integration of investors into a compliant digital finance architecture.

U.S Stablecoin Bill to push crypto to traditional finance 

The passage of the Stablecoin Bill has raised discussions that this legislation will bring more traditional financial institutions into the cryptocurrency market.The bill, if signed into law, will establish guardrails for stablecoins, including full reserve backing by U.S dollars and treasury bills, monthly audits, and consumer protections.

South Korea’s Ruling Party unveils plan to allow stablecoins

South Korea’s ruling party has proposed the Digital Asset Basic Act, a legislative initiative aimed at fostering growth in the local cryptocurrency market by permitting the issuance of stablecoins. The proposed bill would enable domestic companies to issue stablecoins, provided they meet a minimum equity capital requirement of ₩500 million (approximately $368,000 USD). However, this legislative push faces notable opposition from the Central Bank of Korea. The Bank expresses concerns that the issuance of stablecoins by non-bank entities could weaken monetary policy effectiveness. 

Deals and Raises

1. Instapay Closes $3 Million in a Series A2 round to expand its product and geographical reach.
2. Grifin Raises $11 Million in Series A founding round led by Nava Ventures
3. Payabli Raises $28 Million to expand embedded payments and AI tools
4. Ramp Raises $200 Million at new $16 Billion valuation
5. PaidHR closes a $1.8 Million seed round to expand business operations

Mergers and Acquisitions

1. Lemfi Acquires Pillar to boost immigrant credit access in the UK and Globally
2. Wix Buys Base44, 6-month old solo-owned vibe coder 
3. NetGuardians and Intix Merge to create transaction intelligence firm Vyntra
4. Xero Acquires Melio, a B2B Bill pay platform for $2.5 Billion
5. Chowdeck Acquires Mira to power restaurant operations across Africa

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Join the Conversation:

Do 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. 

Please note that the information provided in this article does not constitute legal advice and should not be construed as such. 

You can also read and catch up with the other regulatory roundup on our website

Regcompass May Regulatory Roundup 2025

Welcome to Regcompass May Regulatory Roundup for 2025. We provide you with the latest regulatory news and insights across Nigeria, Africa and beyond that occurred in May. Let’s dive into a thoughtful and comprehensive update on recent developments. 

Regulatory Update in Nigeria May 2025

• SEC attributes Delays in Issuance of New Crypto Licenses to Slow  Inter-Agency Coordination
• CBN Approves Open Banking Launch for August 2025
• FIRS Tightens CRS and FATCA Compliance for Financial Institutions
• Meta Faces Regulatory Heat in Nigeria Over $290M Fines
• CBN Licenses  MSME payment solution
• Nigeria’s CAC and NIBSS Launch Data Access API
• CBN Unveils the Non-Resident Bank Verification Number (NRBVN) System
• US Remittance Tax Proposal Threatens Nigeria’s FX Inflows
• CBN Faces Interbank Rate Shift After N1.4 Trillion Withdrawal
• ARCON Battles to Regulate Digital Advertising in Nigeria
• CBN Releases Draft Baseline Standards for Automated Anti-Money Laundering (AML) Solutions

Across Africa: Welcoming Innovation While Addressing Challenges

• Kenya Banks oppose CBK Credit Pricing Plan
• Kenyan Court Directs Worldcoin to Erase Collected Biometric Data 
• Ghana to Implement Cryptocurrency Regulations by September
• AI Cybercrime Boosts Need for Human-Focused Security in Africa
• Kenya Introduces Bill to Ban Cashless-Only Transactions for Purchases Below $775
• Sierra Leone’s Telco Regulator Faces $4.2M Tax Bill or Shutdown

Across the World

• WhatsApp Wins $167M Ruling Against NSO Group in Spyware Case
• Texas, Google Settle $1.38B Privacy Case
• US-China Tensions Escalate Over Huawei AI Chip Export Controls 
• UK Sets New Rules to Regulate Buy Now, Pay Later Lending
• UK’s new AML Rules Transforms the  Real Estate Sector

Crypto Scoop: 

• Coinbase Data Breach Hits 69,000+ Customers

Deals and Raises

• FINOM Raises €92.3 Million from General Catalyst’s Customer Value Fund
• Stash Lands $146 Million Series H Investment to Advance AI Financial Tools
• Africa’s Startup Funding Surges to $803 Million in 2025, Led by South Africa and Egypt
• Swedfund Commits $15M to TLG Africa Growth Impact Fund 
• Rippling Lands $450M, Reaches $16.8B Valuation and Names YC as a Customer
• Bestow Attracts $120 Million in Growth Capital from Goldman Sachs
• Airtel Africa Begins $55M Share Buyback After IPO Delay
• Greenlite AI Raises $15M to Scale AI Compliance Agents
• Fincom Raises Series B Funding Led by Nasdaq Ventures

Mergers and Acquisitions

• C-One Ventures Takes Over Bankly
• Coinbase’s $2.9B Acquisition of Deribit Signals Push into Crypto Derivatives
• SavvyMoney Procures CreditSnap to Expand Digital Lending Solutions
• Robinhood to Buy WonderFi for C$250 Million
• Databricks to Expand AI Infrastructure with $1B Acquisition of Neon

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News in Nigeria

Nigeria’s SEC Delays Issuance of New Crypto Licenses

The Nigerian SEC is taking a cautious approach to issuing new virtual asset service provider licenses, pausing after granting just two in 2024. The regulator identified the need for deeper due diligence and better coordination with other agencies before approving more licenses. This reflects a focus on investor protection and market integrity, especially following failures like CBEX and crackdowns on offshore exchanges. While this slows market expansion, it underscores the SEC’s commitment to responsible regulation in the digital asset space.

CBN Approves Open Banking Launch for August 2025

On April 29, 2025, the CBN announced Nigeria’s Open Banking launch for August 2025, making it the first in Africa. Banks will enable secure, customer-consented data sharing with licensed fintechs via standardized APIs. The industry will lead implementation, with strong consent controls tied to BVN to protect data. This creates new compliance requirements and opportunities for innovation and competition. It marks a major step toward a more inclusive, customer-centric financial ecosystem.

FIRS Tightens CRS and FATCA Compliance for Financial Institutions

The FIRS is stepping up enforcement of CRS and FATCA compliance for fintechs, requiring annual filings by May 31 and March 31 respectively, with significant penalties for late or missing returns. Fintechs must also regularize any outstanding CRS filings by March 31, 2025, to avoid fines. This reflects Nigeria’s commitment to global tax transparency and means fintechs should prioritize compliance to mitigate financial and reputational risks.

Meta Faces Regulatory Heat in Nigeria Over $290M Fines

Meta is facing nearly $290 million in fines from Nigerian regulators for breaching data protection, competition, and advertising laws. Nigeria requires explicit approval before user data leaves the country, a rule Meta calls excessive. Despite Meta’s appeals, courts have upheld the fines, and the company warns it may shut down Facebook and Instagram in Nigeria if demands remain unmet. This dispute underscores Nigeria’s determination to enforce digital sovereignty and protect consumers, while highlighting challenges in balancing regulation with the presence of global tech platforms.

CBN Licenses MSME payment solution

Preferred Finance has secured a CBN licence to offer regulated loans and advisory services to MSMEs nationwide. Evolving from a cooperative with 10,000+ members, it plans to scale using digital onboarding and automated compliance. This move highlights Nigeria’s push for financial inclusion and stronger frameworks supporting small business financing.

Nigeria’s CAC and NIBSS Launch Data Access API

Nigeria’s CAC and NIBSS launched an API that  gives vetted private firms secure, real-time access to company data. This speeds up compliance and identity checks while protecting personal information under data laws. It broadens access beyond government agencies, boosting transparency and trust. The move modernizes Nigeria’s regulatory system and supports the digital economy.

CBN Unveils  the Non-Resident Bank Verification Number (NRBVN) System. 

The Central Bank of Nigeria has launched a new platform that lets Nigerians living abroad get their Bank Verification Number (BVN) remotely. This makes it easier and cheaper for them to send money home through official channels. With up to 27  banks integrated  and strong security checks, the platform encourages safer, formal remittances. This benefits banks and fintech companies by opening up the diaspora market and helps Nigeria’s economy by increasing foreign currency inflows and promoting financial inclusion. 

US Remittance Tax Proposal Threatens Nigeria’s FX Inflows

Nigeria’s critical reliance on remittances for household support, naira stability, and foreign reserves is threatened by a proposed 5% U.S. tax. This tax could significantly reduce inflows, potentially forcing many remitters, especially non-citizen migrants, into informal channels due to higher costs and lack of tax credits. This shift would undermine transparency and financial inclusion, prompting Nigerian authorities to engage U.S. policymakers to safeguard these vital economic transfers. 

CBN Faces Interbank Rate Shift After N1.4 Trillion Withdrawal

Nigeria’s money market is tight, pushing up borrowing costs for businesses and consumers due to liquidity challenges. However, expected government inflows may ease this soon, improving funding conditions. The central bank is keeping interest rates steady to balance inflation control with economic support. In this uncertain climate, we advise that companies should plan carefully amid ongoing risks.

ARCON Battles to Regulate Digital Advertising in Nigeria

A recent court ruling confirms ARCON’s power to regulate all advertising in Nigeria, including on social media. Influencers and digital marketers will now face stricter rules and likely need ad approvals before posting. This signals tighter oversight in digital advertising. For businesses and creators, compliance is crucial to avoid penalties and uphold higher advertising standards.

CBN Releases Draft Baseline Standards for Automated Anti-Money Laundering (AML) Solutions

The CBN has released a draft outlining baseline standards for automated AML systems. It requires banks and financial institutions to adopt smarter, AI-driven tools for real-time monitoring and risk detection. The draft emphasizes the need for  tighter integration with customer data and stronger cybersecurity. Institutions will have a year to comply once the standards are finalized. This move shows the CBN’s commitment to modernizing AML controls and strengthening compliance across the sector.

Across Africa: Welcoming Innovation While Addressing Challenges

Kenya Banks oppose CBK Credit Pricing Plan

Kenyan banks are opposing the Central Bank of Kenya’s (CBK) ‘s new loan pricing plan, fearing it could act as hidden rate caps, limiting loan pricing and credit access for small businesses. This highlights the constant struggle between regulation and market forces.

Kenyan Court Directs Worldcoin to Erase Collected Biometric Data

Kenya’s court has ordered Worldcoin to erase collected biometric data, ruling it violated data protection rules, sending a clear message for digital identity projects in Africa to prioritize privacy compliance and genuine consent

Ghana to Implement Cryptocurrency Regulations by September

Ghana plans to implement cryptocurrency regulations by September, granting the central bank power to oversee and license digital asset providers, aiming to protect users, reduce fraud, and position Ghana as a regional leader in formalizing crypto market. 

AI Cybercrime Boosts Need for Human-Focused Security in Africa

AI is changing the cybersecurity game for African businesses. On one hand, AI tools boost threat detection and help with compliance. On the other, cybercriminals are using AI to launch more advanced attacks like deep fakes and phishing scams. This means companies need to use AI carefully, combining technology with strong human oversight and ongoing staff training. Striking the right balance is key to protecting digital assets and staying compliant as cyber threats grow more complex.

Kenya Introduces Bill to Ban Cashless-Only Transactions for Purchases Below $775

Kenya has introduced a bill that will require businesses to stop accepting cash for payments made in person under $775 at stores or service counters. The aim is to encourage digital payments while protecting people without digital access. Businesses should prepare for potential compliance changes to avoid fines.

Sierra Leone’s Telco Regulator Faces $4.2M Tax Bill or Shutdown

Sierra Leone’s telecom sector faces tough times. The tax authority is threatening to shut down NATCOM over a $4.2 million unpaid tax, and state-owned Sierratel has frozen accounts due to $14 million in debts. NATCOM also fined major operators $1.35 million and ordered free calls after service quality didn’t improve despite price hikes.

This shows the government is serious about enforcing taxes and improving services. Telecom companies should prepare for stricter rules and financial scrutiny.

Across the World

WhatsApp Wins $167M Ruling Against NSO Group in Spyware Case

NSO Group has been  ordered to pay $167 million for illegally hacking WhatsApp users, including journalists and activists. This landmark ruling sets a strong precedent for accountability and compliance with data and privacy rules. 

Texas, Google Settle $1.38B Data Privacy Case

The state of Texas has reached a $1.375 billion settlement with Google following  allegations that it collected sensitive data, like biometrics and location without proper consent. The state also accused Google of tracking users even when location services were off and misleading them about privacy in Incognito Mode. Google denies wrongdoing and won’t change its products, but this settlement signals growing legal risks for tech companies that mishandle user privacy.

US-China Tensions Escalate Over Huawei AI Chip Export Controls 

The U.S. and China are clashing again, this time  over Huawei’s AI chips.  China has threatened legal action in response to the US’s guideline rescinding Biden’s AI diffusion rules. The U.S. warned that using these chips could break export rules worldwide. 

UK’s new AML Rules Transforms the  Real Estate Sector

From May 14, 2025, UK letting agents, landlords, and property managers must carry out anti-money laundering checks on everyone involved in a rental, no matter the rent. This includes verifying identities and checking financial sanctions, with strict record-keeping and reporting required. The rules close previous loopholes, increasing compliance costs and risks of heavy penalties for non-compliance. Overall, the rental sector must be more thorough and careful to prevent financial crime.

UK Sets New Rules to Regulate Buy Now, Pay Later Lending

Starting mid-2026, third-party Buy-Now, Pay-Later (BNPL) providers in the UK will be regulated by the Financial Conduct Authority (FCA). They’ll need to check if customers can afford payments, clearly explain terms, and speed up refunds. BNPL services offered directly by merchants are currently exempt but will be monitored. This change aims to protect consumers and bring BNPL in line with traditional credit rules. Providers should prepare for new compliance requirements as the FCA finalizes the details.

Crypto Scoop

Coinbase Data Breach Hits 69,000+ Customers

Coinbase recently experienced a data breach affecting approximately 69,500 customers. The incident involved hackers bribing overseas support agents to gain unauthorized access to personal information and transaction history. While no passwords or private keys were compromised, Coinbase refused a $20 million ransom demand and has offered a reward for information leading to the culprits’ capture. This breach has led to lawsuits and is estimated to cost Coinbase up to $400 million. Affected users are being offered credit monitoring, and Coinbase is enhancing its security measures, including relocating some support operations to the U.S. This incident highlights the significant and persistent risk of insider threats for cryptocurrency firms. 

Deals and Raises

1. FINOM Raises €92.3 Million from General Catalyst’s Customer Value Fund
2. Stash Lands $146 Million Series H Investment to Advance AI Financial Tools
3. Africa’s Startup Funding Surges to $803 Million in 2025, Led by South Africa and Egypt
4. Swedfund Commits $15M to TLG Africa Growth Impact Fund 
5. Rippling Lands $450M, Reaches $16.8B Valuation and Names YC as a Customer
6. Bestow Attracts $120 Million in Growth Capital from Goldman Sachs
7. Money Fellows Lands $13M to Scale Fintech Services Across Africa
8. Airtel Africa Begins $55M Share Buyback After IPO Delay
9. Greenlite AI Raises $15M to Scale AI Compliance Agents

Mergers and Acquisitions

1. C-One Ventures Takes Over Bankly
2. Coinbase’s $2.9B Acquisition of Deribit Signals Push into Crypto Derivatives
3. SavvyMoney Procures CreditSnap to Expand Digital Lending Solutions
4. Robinhood to Buy WonderFi for C$250 Million
5. Databricks to Expand AI Infrastructure with $1B Acquisition of Neon

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Join the Conversation:

Have questions or insights about the regulatory landscape in your region? or you are interested in receiving further insights on the May Regulatory Roundup 2025. Reach out to Regcompass 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! 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.

March Regulatory Roundup 2025

Welcome to the March 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 

• SEC warns against unregistered investment schemes
• SEC directs CMOs to pay 2024 CCCOCIN annual dues 
• Name and Shame’ policy introduced by SEC
• Reps to consider reports of tax reform bills
• NDPC Issues NDPA General Application and Implementation Directive
• Tinubu signs Investment and Securities Act into Law
• CBN Enhances Oversight to Protect Nigeria’s Financial System
• FATF’s Revised 40 Recommendations
• Trademark Class Filing: Zap v Zap Africa

Across Africa: Welcoming Innovation While Addressing Challenges

• Ripple Teams Up With Chipper Cash.
• Foreign digital lenders give Kenya a conundrum
• Flutterwave Expands Payment Services in Ghana
• Ghana and Rwanda Advance Fintech Licence Passporting

Across the World:

• Atoa Payments Secures FCA Authorisation.
• Cashflows Facilitates Mswipe UK Expansion to Improve Business Payment
• FCA Seeks Industry Feedback on Removing £100 Contactless Payment Limit
• Australian Government to Regulate Buy Now, Pay Later Industry as Credit Products
• UAE Central Bank Sanctions Five Banks for Tax Compliance Violations 
• Update on Clients with UK Entities
• FRA Approves Digital Onboarding Across Egypt.

Crypto Scoop: 

• Binance ends Tether USDT trading in Europe
• FDIC Clears Path for Bank Crypto Activities Without Prior Approval
• U.S Government removes Tornado Cash sanctions. 
• Pakistan aims to  legalise Bitcoin and crypto
• SEC to drop lawsuit against Ripple 

Deals and Raises:

• Nigeria Clean Energy Financing Startup, Payhippo, Raises $4 million in Pre-Series A Funding, Rebrands as Rivy
• Solace Commences Series B Funding Round, Set to be Valued at $300 million
• NITDA partners Dubai firm to create remote job opportunities for Nigerian tech talents

Mergers and Acquisitions

• TAJ bank to raise N20 billion to strengthen capital base

Regulatory update in Nigeria 

SEC warns against unregistered investment schemes

The SEC notice provides important safeguards against possible financial fraud. In an effort to protect investors from large financial losses, the SEC is actively exposing unregistered schemes such as Pro-Vest and My Share. A safer investment environment is promoted by this proactive approach, which upholds the integrity of the Nigerian capital market. 

SEC directs CMOs to pay 2024 CCCOCIN annual dues 

The Securities and Exchange Commission(SEC) is actively pushing for greater compliance within the capital market by reminding Chief Executive Officers of Capital Market Operators (CMOs) of their obligation to register their Compliance Officers with the Chartered Council of Compliance Officers of Nigeria (CCCOCIN) and promptly pay annual dues. This directive following up on a previous communication, signals the SEC’s commitment to strengthening the CCCOCIN’s role in improving regulatory adherence, as evidenced by the current low compliance level.The SEC urges CMOs to clear 2024 dues and pay 2025 fees early, reinforcing efforts to boost market integrity and investor confidence, including naming non-compliant operators.

Name and Shame’ policy introduced by SEC

The Nigerian SEC has launched a “name and shame” policy targeting capital market operators (CMOs) who flout regulatory obligations. This public disclosure approach not only tarnishes the reputation of erring firms but also signals potential loss of investor trust, suspension of market activities, and disqualification from future regulatory approvals. By listing defaulters in its official journal, the SEC is reinforcing accountability, leveraging reputational risk as a powerful enforcement tool, and signaling that regulatory non-compliance now comes with both public and commercial consequences.

Reps to consider reports of tax reform bills

The House of Representative began a clause-by-clause review of the tax reform bill reports. This follows a three-day public hearing and the review of memoranda and stakeholder inputs. Among the reports presented is a bill aimed at regulating tax assessment, collection, and revenue accounting for all tiers of government while defining the powers and functions of tax authorities. While this development could translate into a more predictable business environment, potentially reducing compliance burdens and fostering economic stability. It is definitely crucial for businesses to monitor the legislative process. 

NDPC Issues NDPA General Application and Implementation Directive

The Nigeria Data Protection Commission (NDPC) has issued the General Application and Implementation Directive 2025 (GAID), providing a clear framework for enforcing the Nigeria Data Protection Act 2023 (NDPA), which replaces the NDPR. GAID mandates annual compliance audits, registration for major data controllers/processors, and extends the NDPA’s scope to Nigerians abroad—enhancing data governance, accountability, and global alignment.

Tinubu signs Investment and Securities Act into Law

President Bola Ahmed Tinubu’s signing of the Investment and Securities Act (ISA) 2025 marks a transformative moment for Nigeria’s capital market, signaling a robust commitment to modernizing and strengthening the nation’s financial framework.This offers important advantages and safeguards, because a more safe investing environment results from the Act’s emphasis on improving investor protection and market transparency,which lowers the risk of financial frauds and Ponzi schemes that have historically afflicted the market.Additionally, the strengthened regulatory framework empowers the SEC to enforce compliance and maintain market stability, fostering a more credible and resilient capital market for businesses in long-term financial growth and security.

CBN Enhances Oversight to Protect Nigeria’s Financial System

The Central Bank of Nigeria (CBN) has reaffirmed its commitment to a transparent and resilient financial system, urging financial institutions to align with international standards for risk management and regulatory compliance particularly in Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT). At a high-level training that was held, the CBN and Citi representatives emphasized the need for dynamic, risk-based AML/CFT programs, proactive regulatory engagement and strong governance frameworks including (KYC, KYB and KYT )protocols. These efforts support the CBN Governor’s vision of regulatory excellence and enhanced trust in Nigeria’s financial ecosystem.

FATF’s Revised 40 Recommendations

The Financial Action Task Force (FATF) has introduced pivotal updates to its 40 Recommendations, signaling a shift from procedural compliance to outcome-driven risk management. Two changes are especially noteworthy: supervisors are now required to assess the effectiveness of risk mitigation measures, not just their existence, and non-face-to-face (NFTF) relationships are no longer automatically high-risk if strong controls are in place. For businesses, this means rethinking compliance strategies moving away from box-ticking toward demonstrable, risk-responsive frameworks. Effective system controls, customer authentication, and platform governance will now define regulatory confidence, opening the door to more nuanced risk ratings and potential cost savings.

Trademark Class Filing: Zap v Zap Africa

The trademark clash between Zap Africa and Paystack serves as a timely warning for startups and tech companies that filing a trademark is not enough but filing it in the right class is critical. Zap Africa’s registration under Class 35 (business services) didn’t shield it from Paystack’s “Zap” app in Class 36 (financial services), exposing a gap in protection. This highlights a core truth misaligned trademark filings can leave your brand legally vulnerable, no matter how early you register. For founders, it’s a reminder that trademark strategy isn’t just legal housekeeping, it’s brand survival.

ACROSS AFRICA 

Ripple Teams Up With Chipper Cash. 

In order to facilitate cross-border payments into Africa, digital financial service providers Chipper Cash and Ripple have partnered to introduce blockchain technology through Ripple Payments. This departure from traditional methods promises much faster and cheaper international transfers, potentially increasing financial inclusion and reducing friction for individuals and businesses across Chipper Cash’s network users in nine African countries.This alliance offers more convenience and accessibility for remittances and international trade by enabling 24/7 global transfers.

Foreign digital lenders give Kenya a conundrum

Kenya is facing increasing regulatory pressure from foreign digital lenders that continue to violate its Data Protection Act, exploiting the lack of an international framework for cross-border data privacy enforcement. With nearly one-third of consumer complaints in the last fiscal year linked to the financial sector, primarily digital lenders,the Data Protection Commission is now pursuing mutual legal assistance to block non-compliant apps. The absence of global protocols for data protection, unlike those for money laundering or cybercrime, leaves significant enforcement gaps and complicates efforts to hold foreign platforms accountable for borrower data misuse.

Flutterwave Expands Payment Services in Ghana

Flutterwave, a leading African payments technology company, has expanded its operations in Ghana by launching the “Pay with Bank Transfer” service, in partnership with Affinity Bank. This initiative enables Ghanaian businesses to receive payments seamlessly through bank transfers, a method that recorded over 115 million transactions in 2023. While mobile money remains dominant, the rise of bank transfers reflects a shift in Ghana’s payment ecosystem. This development aligns with Flutterwave’s mission to simplify payments across Africa and follows its recent approval by the Bank of Ghana to provide inward remittance services

Ghana and Rwanda Advance Fintech Licence Passporting

Ghana and Rwanda have signed a landmark agreement to implement a fintech licence passporting framework, allowing licensed fintechs in either country to operate seamlessly across both jurisdictions. This initiative also includes plans for interoperable cross-border payment systems. Beyond regulatory efficiency, this marks a shift toward a more unified African fintech landscape  reducing market entry friction, encouraging regional scaling, and setting a precedent for broader regulatory harmonization across the continent. For fintechs, it signals a future where regional expansion could become faster, cheaper, and more predictable.

Across the World:

Atoa Payments Secures FCA Authorisation.

Atoa Payments, a UK-based company specializing in open banking-enabled payment solutions, has achieved a significant regulatory milestone by securing authorization from the Financial Conduct Authority (FCA) to operate as an Authorised Payment Institution. This approval empowers Atoa to expand its service offerings to larger businesses across the UK, now including payment initiation, virtual account services, and payment account information services.  This demonstrates to fintech companies how open banking has the ability to upend established payment methods by providing significant cost reductions and quicker transaction speeds. In the end, this action promotes the adoption of more effective and client-focused financial services by stimulating additional investment and development in open banking technologies. 

Cashflows Facilitates Mswipe UK Expansion to Improve Business Payment

By using Cashflows’ BIN sponsorship and regulatory framework, Mswipe can efficiently enter the UK market, avoiding direct scheme membership and complex compliance hurdles. This accelerates market entry, cuts costs, and allows Mswipe to operate as a full acquirer with its existing technology. This provides a simplified route for fintechs to grow internationally, encouraging innovation and development in the payments sector by democratizing access to new markets and lowering the administrative costs usually involved in such growth.

FCA Seeks Industry Feedback on Removing £100 Contactless Payment Limit 

Removing the contactless payment cap carries significant implications for companies, alongside clear advantages. Greater transaction flexibility could boost sales and enhance customer convenience, particularly for higher-value purchases that may drive economic growth. Financial institutions would also be better positioned to develop innovative payment solutions and implement advanced fraud detection technologies, leading to safer and more efficient transactions. However, strong fraud protection measures will be critical to support this transition.

UAE Central Bank Sanctions Five Banks for Tax Compliance Violations

The Central Bank of the UAE’s recent imposition of substantial financial penalties on several banks and insurance companies highlights the increasing regulatory pressure on fintech and financial institutions to ensure stringent tax compliance. For fintech companies and all businesses generally, this serves as a stark reminder that robust due diligence processes and accurate financial reporting are not optional but mandatory, as regulators actively work to combat tax evasion and maintain transparency.

Update on Clients with UK Entities 

UK Companies House has introduced major reforms to boost transparency and combat economic crime, with this Stricter ID checks will apply to company formation and management, with third-party verifiers registered as Authorized Corporate Service Providers ACSPs. These changes aim to reduce fraud, increase accountability, and build trust in UK business data.

FRA Approves Digital Onboarding Across Egypt. 

This signifies a regulatory evolution allowing fintech companies like mylo to leverage technology for remote customer onboarding, account activation, and instant credit access. The approval eliminates previous barriers, enabling faster and more convenient financial service delivery, which is particularly significant as mylo expands its reach across Egypt, indicating a regulatory environment increasingly supportive of digital financial inclusion.

Crypto Scoop:

Binance ends Tether USDT trading in Europe

Binance has ceased providing spot trading pairs for Tether’s USDt and other non-compliant tokens within the European Economic Area (EEA), this is due to the European Union’s Markets in Crypto-Assets (MiCA) law. These tokens can still be held on Binance and traded in perpetual contracts by users in the EEA and ESMA also guarantees that custody and transfer services for stablecoins that do not comply with MiCA do not contravene the recently enacted European cryptocurrency regulations. 

FDIC Clears Path for Bank Crypto Activities Without Prior Approval

Reversal of the 2022 policy as the FDIC now permits banks under its supervision to participate in legally permitted cryptocurrency and blockchain related activities without obtaining prior approval, so long as they properly manage the risks involved. This is a big step for banking and cryptocurrency advocates as it aims in fostering innovation and capital flow, FDIC emphasizes that banks remain responsible for managing risks like market volatility, cybersecurity and AML obligations.

U.S Government removes Tornado Cash sanctions.

The U.S. Treasury Department has reversed its sanctions on Tornado Cash and removed over 100 associated Ethereum addresses from its SDN list. This came into light after the court ruled that OFAC overstepped its authority by sanctioning immutable smart contracts lacking a controlling party. 

Pakistan aims to  legalise Bitcoin and crypto

Pakistan’s government plans to establish a clear regulatory framework and possibly create regulatory sandboxes for startups as part of its strategic move to legalize cryptocurrencies in order to attract foreign investment and promote innovation in the digital finance space. The government aims to make Pakistan a blockchain finance leader, leverage low costs to rival crypto hubs and align with the global shift toward digital assets for growth.

SEC to drop lawsuit against Ripple 

After four years of litigation, the SEC has formally dropped its long-running case alleging unregistered XRP sales. The ongoing appeals process is void due to this dismissal, which comes after a partial Ripple victory in July 2023 and the SEC’s subsequent appeal in January 2025. The judge ruled that XRP itself wasn’t a security but institutional sales were. The news caused XRP’s price to rise and was seen as a potentially influential legal precedent for the crypto industry.

Deals and Raises:

1. Nigeria Clean Energy Financing Startup, Payhippo, Raises $4 million in Pre-Series A Funding, Rebrands as Rivy
2. Solace Commences Series B Funding Round, Set to be Valued at $300 million
3. Ghana’s Affinity Africa Secures $8M to Expand Digital Banking Services

Mergers and Acquisitions

1. TAJ bank to raise N20 billion to strengthen capital base 

February Regulatory Roundup 2025

Welcome to the February regulatory round up 2025. 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

• Nigerian Commercial Banks Explore Potential Mergers Ahead of Recapitalization Deadline.
• CBN Extends deadline for Forex Purchase on NFEMS by BDCs
• FIRS Commences Withholding Tax System Implementation.
•  CBN Revises ATM Charges for Banks and other Financial Institutions
• Nigeria’s first local Stablecoin, cNGN, Launches following SEC provisional Licence
• Nigeria Commences Effort to Tax Crypto Transactions
• Central Gaming Bill Passes Second Reading
• CBN Releases Guidelines for the Management of Dormant and Inactive Accounts 
• CBN Orders Resignation of Bank Directors with Non-Performing Loans
•  Federal High Court Affirms FCCPC’s Multi Sectoral Jurisdiction
•  Meta in fresh lawsuit Over Privacy Violations
•  Flutterwave Considers Possible NGX Listing
• New NIBSS reports indicate surge in fraud incidences

Regulatory Updates Across Africa

• Airtel Money under Probe   by COMESA
• Kenya Central Bank to Crack down on Commercial Banks over Lending Rates
• Ghana’s NIA to Integrate National ID with Financial Service Credentials
• Ghana Unveils  Plan to Launch e-Cedi in 2025
• Kenya Revenue Authority’s Push to Integrate with Banking Systems Meets Huge Resistance
• South Sudan to Launch First National Instant Payment System
• Ghana and Rwanda Kickstarts Fintech Passporting System
• Nigerian Startup, Startbutton Expands to Seven Francophone Countries, Easing Regulatory Compliance for Businesses

Regulatory Updates Across The World

• Bybit  Suffers Cybersecurity Breach, Resulting in Largest Crypto Heist in History
• California Considers New AI Bill
• US SEC to Change its Digital Assets Oversight Approach
• Philippines Exits  FATF Greylist
• Swiss Bank Unveils Tokenized Gold Product
• India’s IFSCA Unveils  Consultation Paper on Regulatory Approach Towards Tokenization of Real-World Assets

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Crypto Scoop

•  States in the US Move to Establish Bitcoin Govt Reserves
• Central African Republic President Launches Memecoin
• SEC to Drop Law Suit Against Coinbase

Mergers and Acquisitions

• IBM Acquires Hashicorp, in a $6.4 billion Deal.
• Montagu Acquires Temenos’ Multifonds for $400M

Deals and Raises

• Affinity Africa Raises $8 million in Seed Round
• Sardine AI Raises 70 Million in Series C Funding to Boosts its AI Fraud, Risk and Compliance Solutions
• Raenest Secures $11 Million in Series A Funding, Braces up for Expansion to New Markets

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Regulatory Update In Nigeria

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Nigerian Commercial Banks Explore Potential Mergers Ahead of Recapitalization Deadline

With the Central Bank of Nigeria’s (CBN) bank recapitalization deadline set for March 2026,  reports have indicated that several Nigerian commercial banks are exploring possible mergers and acquisitions in order to meet the capital requirements. Fintechs and startups partnering with these banks may experience disruptions, regulatory uncertainties, and shifts in banking relationships. Businesses should stay informed and assess potential impacts on payments, lending, and liquidity access.

CBN Extends  deadline for Forex Purchase on NFEMS by BDCs

The Central Bank of Nigeria (CBN), in one of its latest circulars, has granted a deadline extension, allowing Bureau de Change (BDC) operators to purchase foreign exchange, with a cap of $25,000 weekly from authorized dealers in the Nigerian Foreign Exchange Market (NFEM), up until May 30, 2025. This move aims to stabilize retail FX supply and ensure market liquidity. For fintechs and startups involved in FX transactions or cross-border payments, this extension provides a longer window for structured access to FX but requires strict compliance with pricing and reporting rules. 

FIRS Commences Withholding Tax System Implementation

Federal Inland Revenue Services (FIRS) has commenced the implementation of the Withholding tax system, mandating the deduction of taxes directly from payments such as salaries, rents, professional fees and dividends. This comes with stricter tax compliance obligations on businesses, employers and other payers to deduct taxes at the point of payment with integration of Tax Identification Numbers (TINs) in transactions, and potential investment in tax software.

Nigeria’s first local Stablecoin, cNGN,Launches following SEC provisional Licence

The Nigerian Securities and Exchange Commission (SEC) has granted a provisional licence to cNGN, Nigeria’s first local Stablecoin, linked to the Nigerian naira. While this development undoubtedly positions Nigeria as a leader in Africa’s fintech sector, offering a regulated digital currency that bridges traditional finance with blockchain technology, the stability of cNGN is however intrinsically linked to the Naira’s performance, which has experienced volatility in recent years, transparency, security, and stability will be key to cNGN’s long-term success in Nigeria’s digital economy.

CBN Revises ATM Charges for Banks and other Financial Institutions

The Central Bank of Nigeria (CBN) has issued new ATM withdrawal charges for banks and financial institutions. Withdrawals from on-site ATMs (within bank premises) now attract a ₦100 fee per ₦20,000, while off-site ATMs (outside bank premises) carry an additional surcharge of up to ₦500 per ₦20,000 withdrawal. While this move aligns with CBN’s push for a cashless economy, increased ATM usage and additional revenue to be channeled into ATM maintenance for banks, concerns remain about its impact on the cash-dependent informal sector. However, the directive may also encourage payment service license holders to expand digital payment gateways, providing alternative transaction methods and reducing reliance on physical cash. 

Nigeria Commences Effort to Tax Crypto Transactions

Nigeria’s new cryptocurrency regulations mark a shift from prohibition to structured oversight, introducing taxation, licensing and increasing compliance costs for digital assets businesses, especially startups. Licensing requirements and taxation may push smaller firms out but the regulatory clarity could attract institutional investors, boosting industry growth. 

Central Gaming Bill Passes Second Reading

Following the recent Supreme court ruling invalidating the country-wide application of the National lottery Act, on grounds that the regulation of gaming and lottery activities is not within the exclusive legislative powers of the federal government, the House of representatives have introduced a Central Gaming Bill, seeking to harmonize the regulatory framework for online gaming and lottery activities. The bill attempts to  restore the federal government oversight over gaming and lottery activities. 

CBN Releases Guidelines for the Management of Dormant and Inactive Accounts
The Central Bank of Nigeria in its new Guidelines has mandated financial institutions to implement controls to prevent unauthorized use of dormant accounts, publish details of dormant accounts, and also transfer funds in dormant accounts to a CBN maintained central account, with the depositor’s right to reclaim the funds at any given time. While aimed at preventing fraud and other illicit purposes, the guidelines also raises significant data privacy concerns with regards to the publication of details of account holders, in addition to the additional administrative costs that come with notification of dormant account holders and publication of their account details.

CBN  Orders Resignation of Bank Directors with Non-Performing Loans

The Central Bank of Nigeria has directed the immediate resignation of directors of banks with non-performing insider loans. This comes as part of the CBN’s initiative to strengthen corporate governance, reduce unethical lending practices and ensure more robust credit risk management practices by financial institutions.

Federal High Court Affirms FCCPC’s Multi Sectoral Jurisdiction

The Federal High court has  affirmed the Federal Competition and Consumer The Federal High court has  affirmed the Federal Competition and Consumer Protection’s (FCCPC) jurisdiction over competition and consumer protection practices across all sectors. This came as a turnout of a suit by a shareholder of telecom company, MTN, who sought to quash the commission’s investigation into the affairs of MTN. The decision of the court has however further strengthened and affirmed the powers of the FCCPC.

Meta in fresh lawsuit Over Privacy Violations

Femi Falana, a Nigerian human rights activist has instituted a fresh lawsuit against Meta over privacy violations, alleging that the company allowed its platform to be used to broadcast a deceptive advertisement portraying him as having prostatitis, a condition he claimed he has never had, with the advert containing his picture, name and voice. With the suit still pending in court, the case presents a very critical question of whether there is a connection between defamation claims and privacy rights. It’s also a wake up call particularly for social media outlets to take more proactive steps against the broadcast of deceptive posts on their platforms.

Flutterwave Considers  Possible NGX Listing

The Nigerian government has pledged to support Nigerian-led African Unicorn, Flutterwave, in its recent plans to be listed on the Nigerian exchange limited. The listing could serve as a significant boost for the Nigerian capital markets and set a precedent for other home-grown fintechs in the country to follow.

New NIBSS reports indicate surge in fraud incidences

The Nigeria Inter-Bank Settlement System (NIBSS), in its latest reports, has indicated an increase in the rate of fraud incidences, with a total of about 52.26 billion lost to fraud activities in the year 2024, a figure representing an increase of about 200% from what was recorded in 2023. This presents a need for financial institutions especially, to implement stronger fraud prevention measures, which may range from stronger identification and authentication measures, stronger transaction monitoring measures and leveraging behavioral analytics amongst others.

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Across Africa: Welcoming Innovation While Addressing Challenges

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Airtel Money under Probe by COMESA
The Common Markets for Eastern and Southern Africa (COMESA) Competition Commission has commenced investigations into the activities of Airtel Money, over allegations of hidden charges and failure to disclose foreign currency exchange rates for their cross-border transactions. While the commission is yet to reach any decision, these allegations, again, underscores the importance of upholding consumer protection practices, including ensuring transparency, customer right to information and avoidance of deceptive practices.

Kenya Central Bank to Crack down  on Commercial Banks over Lending Rates
Following a recent directive from the Kenya Central banks directing commercial banks to implement a reduction in their lending rates in line with the Risk-based Credit Pricing model, Commercial banks in Kenya have started implementing a reduction in their lending rates. Reports indicate that the CBK has started embarking on on-site inspection of commercial banks to ensure compliance. From the reports of the CBK Monetary Policy Committee, the goal of the CBK is to ensure greater access to credit across different sectors of the economy.

Ghana’s NIA to Integrate National ID with Financial Service Credentials
Ghana’s National Identification Authority has commenced efforts towards integrating the Ghana Card with financial services credentials such as mobile money and bank accounts to create a single identification, thereby simplifying financial transactions and documentation.  This move could potentially strengthen anti-money laundering and Know your customer controls for financial institutions by linking transactions to verified identities. On the flip side, centralizing identity and banking functions raises privacy and cybersecurity risks, as a single data breach could expose both personal and financial information.

Ghana Unveils Plan to Launch e-Cedi in 2025
Ghana’s Central Bank has announced plans to launch the e-cedi, a central bank digital currency by 2025. The goal of the initiative is to enhance digital payments, improve financial inclusion and reduce cash dependence.

Kenya Revenue Authority’s Push to Integrate with Banking Systems Meets Huge Resistance

While the Kenya Revenue Authority (KRA) has intensified efforts towards integrating their systems with banking institutions to allow for real-time access to transaction records for the purpose of monitoring tax compliance and streamlining revenue collection process, has met huge resistance from banks, who decried the initiative could occasion consumer data leaks and breaches.

South Sudan to Launch First National Instant Payment System
In partnership with AfricaNenda, the Bank of South Sudan (BoSS) is set to launch a national instant payment system, enabling secure, real-time, and cost-effective transactions across various players in the financial ecosystem. This initiative aligns with the broader trend of payment system modernization across Africa, where 26 countries have already implemented instant payment systems, while 27 others are in the process of launching theirs.

Ghana and Rwanda Kickstarts  Fintech Passporting System

The Bank of Ghana and National Bank of Rwanda have signed a memorandum of understanding to create a fintech passporting system, allowing businesses to seamlessly facilitate cross-border payments across these territories.  This marks  a landmark achievement for the continent, and could significantly set a precedent for more financial integration activities within the African markets.

Nigerian Startup, Startbutton Expands to Seven Francophone Countries,  Easing Regulatory   Compliance for Businesses

A Nigerian Norrsken backed startup, has expanded into seven francophone countries. This expansion is significant because it enables businesses to enter these new markets and accept local payments without establishing physical offices. By acting as a Merchant of Record, Startbutton manages local compliance, currency conversions, and payment processing, allowing companies to navigate cross-border complexities associated with business expansion into these jurisdictions.

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Across the World

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Bybit Suffers  Cybersecurity Breach, Resulting in Largest Crypto Heist in History

Global crypto currency exchange, Bybit has suffered a major cybersecurity breach leading to a loss of about $1.5 billion dollar worth of crypto assets, mostly in ethereum. The breach seemed to have also occasioned a drop in the value of ethereum, by as much as 4%, within hours from when the breach was announced. The initial incident report suggests the threat actors exploited a vulnerability in their third party wallet provider. This underscores the need for greater third party risk management in modern financial services. 

California Considers New AI Bill

Following the passage of the European Union Artificial Intelligence (AI) Act, countries globally have continued to intensify efforts towards the development of regulatory frameworks for the regulation of Artificial Intelligence. Against this backdrop, a new Artificial Intelligence bill has been introduced in California, seeking to prohibit algorithm discrimination and placing greater requirements on AI developers and innovators. This follows previous failed attempts to introduce similar bills. If successful, the bill could set a better framework for the promotion of ethical AI in the state.

US SEC to Change its Digital Assets Oversight Approach

The United States Securities and Exchange has indicated a change in its approach to the regulation of digital assets, following the replacement of the Commission’s Crypto Assets and Cyber Unit with the Cyber and Emerging Technologies Unit. This move aligns with the broader approach by the commission to make a shift from targeting crypto industry players to broader cybercrimes issues and general issues associated with retail investors, regardless of the industry.

Philippines Exits FATF Greylist

After about four years of being added to the Financial Action Task Force (FATF) grey list, the FATF has announced the exit of the Philippines from the grey list. The FATF announced that this move was due to the country’s improvement in its Anti-Money Laundering and Countering of Terrorism framework. This move offers greater potential for its financial services industry, as it is expected to reduce compliance barriers associated with cross-border transactions and also create an investor friendly environment for the industry. 

Swiss Bank Unveils Tokenized Gold Product

Switzerland’s largest bank, Union Bank of Switzerland, has commenced testing for its new tokenized gold product, UBS Key-4 gold. The product is being tested on ethereum layer 2 scaling solution ZKsync. It allows users to buy and sell units of gold on-chain, with features including, secure storage, deep liquidity and optional delivery.

India’s IFSCA Unveils Consultation Paper on Regulatory Approach Towards Tokenization of Real-World Assets

With the European Union Markets in Crypto Assets (MiCA) Regulations already setting a precedent for the regulation of tokenized real-world assets (RWAs), the India International Financial Services Centre Authority (IFSCA) has commenced significant efforts towards following suit with the publication of its Consultation paper on the Regulatory Approach towards tokenization of RWAs. While the institution has called for public comments on the consultation paper, this could indicate a possible framework for the regulation of RWAs.

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Crypto Scoop

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States in the US Move to Establish Bitcoin Govt Reserves

About 15 states in the United States are considering legislation to establish a  bitcoin reserve.. While these developments seem to have been largely influenced by Bitcoin’s potential of hedging against inflation, as it prices often fluctuate independently from fiat currencies, there are still concerns as to the workability of the initiative, given the price volatility, liquidity challenge and market manipulation risks associated with cryptocurrencies.  

Central African Republic President Launches Memecoin
Following the adoption of bitcoin as a legal tender earlier in 2022, the president of the Central African Republic (CAR) has announced the launch of a new memecoin, known as $CAR.  Experts have however expressed fear as to the implications of this move, given the high volatility associated with memecoin, with fears that this could be another pump and dump scheme. 

US SEC Clarifies Memecoins are not Securities
The United States Securities and Exchange Commission has clarified the status of memecoin as not qualifying as securities under the securities law. The regulator maintained that memecoins investments are not based on any structured enterprise or common investment and there is usually no expectation of profit associated with the scheme, given that they are largely based on speculative trading and market sentiments, thereby falling short of the Howey test requirements for classifying assets as securities. Going forward, while this ruling might mean less stringent regulatory requirements for memecoin, investors must still exercise caution as a lack of SEC oversight means little or no investor protection, for an asset that is largely regarded as purely a pump and dump scheme.

SEC to Drop Law Suit Against Coinbase

American cryptocurrency exchange, Coinbase has announced that the Securities and Exchange Commission (SEC) has agreed to drop its lawsuit, filed since 2023, against the crypto giant, over allegations of operating an unlicensed securities exchange, broker and agency. Again, this appears to indicate the gradual shift towards deregulation of the cryptocurrency industry, in line with the objectives of the Trump administration.

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A note to you, our most valuable client

We appreciate you being with us and we’re always here to support you. We’d love to hear from you. Share your thoughts with us, let’s keep the conversation going! Please remember that this communication is for informational purposes only and does not constitute legal advice. You can read the January Regulatory Round up 2025 here