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
IN THIS EDITION
News in Nigeria
- FCCPC Sets Deadline for Digital Lending Compliance
- Regulatory Bodies form Joint Group against Digital Wallet Fraud
- CBN Issues warning Against Unlicensed Zuldal Microfinance Bank
- NIBSS Launches National Payment Stack to Unify Digital Transactions
- FG Tackles Housing Deficit with Non-Interest Mortgage Framework
- FIRS Imposes 10% Withholding Tax on Short-Term Securities
- CBN releases circular and guideline on Serial Dud Cheque
Across Africa
- Kenya’s tax tribunal rules payment switches are VAT-free
- Central Bank of Eswatini Balances Digital Innovation and Consumer Protection
- Standard Bank First African Bank to Integrate with China’s CIP.
- Africhange Launches UK Bank Accounts, Achieves Bank of Canada PSP Status
- South African Reserve Bank Flags Crypto Flows as Financial Stability Risk
Across the world
- US Judge Temporarily Blocks CFPB ‘Open Banking’ Rule Enforcement
- Dubai Government Approves Global Digital Wallets for Fee Payments
- Bank of India unveils UPI payment upgrades
- Hong Kong eases crypto laws, allowing exchanges to tap liquidity
- CFPB to Narrow Anti-Discrimination Rules, Targeting ‘Disparate Impact’
Crypto scoop
- Nigeria to Tax Individual Crypto Gains and Mandate Exchange Reporting in 2026
- Bank of England Softens Stablecoin Stance with New Investment Rules
- Sierra Leone Explores Blockchain Integration
- Russia’s Central Bank Allows Banks to Engage in Digital Asset Operations
- Kenya Passes VASP Bill, Adopts Multi-Agency Crypto Oversight
- AFSA to Finalize Cryptocurrency Law by End of Year
Deals and Raises
Merger & Acquisition
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.
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.
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.
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.
- Visa, Mastercard reach revised swipe fee settlement
- Flutterwave, Polygon agree cross-border payments deal
- MoMo PSB seals deal with Thunes to expand cross-border payments
- KCB acquires Minority Stake with Pesapal
- Mastercard Nears $2bn Acquisition of Crypto Firm Zerohash
- Peach Payments merges with RelyComply to strengthen compliance
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.