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
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
- 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
- Money Fellows Lands $13M to Scale Fintech Services Across Africa
- Airtel Africa Begins $55M Share Buyback After IPO Delay
- Greenlite AI Raises $15M to Scale AI Compliance Agents
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
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.
