Nigeria, Rwanda Join Forces on Crypto Regulation to Counter Fraud

Strengthening Regional Oversight

Rwanda and Nigeria have signed a cooperation agreement to deepen collaboration across capital markets and digital assets, marking a significant step toward more coordinated cryptocurrency regulation across Africa as the continent struggles with a rise in fraudulent digital asset schemes.

The agreement, signed between the Capital Markets Authority of Rwanda and the Securities and Exchange Commission of Nigeria, extends beyond traditional capital markets to include the oversight and development of digital asset frameworks. Officials said the move reflects a growing regional consensus on the need to regulate virtual assets in response to the rapid expansion of cryptocurrency markets and a critical gap in investor education.

Nigeria hosts one of the continent’s largest cryptocurrency markets, estimated at approximately $92 billion, and has been actively refining its approach to digital asset supervision. However, the rapid adoption has also made the country a prime target for sophisticated cryptocurrency fraud.

In 2025, the collapse of a prominent digital asset scheme known as CBEX resulted in hundreds of millions of dollars in losses, sparking public anger and street protests in Nigeria after investors were locked out of their accounts. Industry experts note that such fraudulent platforms frequently mimic legitimate financial institutions to exploit information gaps among new users, who often evaluate platforms based on high profit promises rather than regulatory compliance.

Rwanda is currently building its own regulatory ecosystem as part of broader efforts to modernize its financial sector and attract innovation in fintech and blockchain technologies, while attempting to avoid the systemic fraud seen elsewhere on the continent.

Rwanda recently passed the Virtual Assets Business Bill, which formally empowered its Capital Markets Authority to regulate cryptocurrency activities. Meanwhile, Nigeria’s Securities and Exchange Commission has continued to advance its digital asset regulatory framework under the country’s Investments and Securities Act 2025. Both nations are positioning themselves as regulatory leaders in Africa’s evolving virtual asset landscape.

The new cooperation framework is seen as enhancing policy alignment, regulatory exchange, and cross-border coordination between the two jurisdictions.

It also signals a broader continental trend. Several African nations, including Ghana, South Africa, and Egypt, have reportedly entered into similar regulatory cooperation agreements with Nigeria in recent years to build a unified defense against borderless financial crimes in the digital asset space.