The Virtual Asset Service Providers Association (VASPA) has introduced a new regulatory framework aimed at integrating Nigeria’s rapidly growing virtual asset market into the formal financial system, in a move that could reshape oversight, taxation, and participation in the sector.
The framework, titled Project Green-White-Green (GWG) Whitepaper, is positioned as a sovereign-focused blueprint designed to bring structure and clarity to a market where Nigerians are estimated to transact about $92.1 billion annually in virtual assets.
VASPA said the whitepaper is the outcome of months of engagement involving industry stakeholders, regulators, and technical experts, marking what it described as a shift from regulatory uncertainty toward a coordinated and operational model. The framework is built on three core pillars: market integrity, national security, and fiscal sovereignty.
At the regulatory level, the proposal seeks to streamline oversight by fostering closer coordination among key institutions, including the Central Bank of Nigeria (CBN), Securities and Exchange Commission (SEC), Nigerian Financial Intelligence Unit (NFIU), and the Corporate Affairs Commission (CAC). A unified compliance interface is proposed to reduce fragmentation and simplify engagement for operators.
One of the central recommendations is the introduction of a verification system that would allow commercial banks to distinguish between licensed virtual asset service providers and unregulated entities in real time. This is expected to address long-standing restrictions that have limited banking access for operators in the sector.
The framework also proposes aligning foreign exchange pricing mechanisms with official market rates to help safeguard the stability of the naira, while promoting transparency in digital asset transactions.
On national security, the whitepaper emphasises the need to eliminate anonymity in virtual asset transactions by integrating with the National Identity Management Commission (NIMC). This, VASPA noted, would strengthen compliance with global anti-money laundering and counter-terrorism financing standards, particularly as Nigeria continues to navigate heightened international scrutiny.
The fiscal component of the framework highlights the significant revenue potential embedded in Nigeria’s virtual asset market. VASPA estimates that formalising the sector could unlock new tax streams through automated systems that enable the collection of value-added tax and capital gains tax directly at the point of transaction.
In addition, the whitepaper proposes a “clean slate” mechanism that would allow operators to regularise past activities conducted within earlier regulatory grey areas between 2021 and 2024, offering legal clarity as the market transitions into a more structured regime.
Franklin Peters, executive chairman of VASPA and chief executive officer of Boundlesspay, said the initiative reflects a deliberate effort to position Nigeria at the forefront of digital finance innovation.
“We are no longer waiting for the future of finance to happen to Nigeria; we are architecting it. Project Green-White-Green is the definitive roadmap for operators and investors seeking to participate in the country’s digital economy,” he said.
The whitepaper also outlines a 24-month sovereign integration roadmap for foreign operators and introduces a tiered licensing model aimed at ensuring that local startups are not crowded out by larger, capital-intensive players. Other recommendations include the development of stablecoin regulations, cross-border transaction frameworks, improved liquidity mechanisms, and stronger data governance systems.
VASPA further called for the establishment of a dedicated legal framework for virtual assets, alongside the expansion of regulatory sandboxes to support innovation while maintaining oversight.
Favour Uche, project manager for Project Green-White-Green, said the framework balances innovation with national interest, ensuring that speed-to-market does not come at the expense of regulatory safeguards.
To support implementation, the association is proposing a “Safe Harbor Pilot,” a transitional arrangement that would allow both local and international operators to align with emerging regulations within a defined, non-punitive window. The initiative is expected to provide a pathway to full authorisation while maintaining market stability.
VASPA said the whitepaper will serve as a central instrument in its ongoing engagements with regulators and policymakers, including the Office of the National Security Adviser (ONSA), as efforts intensify to develop a coordinated regulatory approach for Nigeria’s virtual asset ecosystem.
The association urged global exchanges, domestic startups, and financial institutions to review the framework and begin adjusting their operational models in anticipation of what it described as a fundamental shift in the country’s digital asset regulatory landscape.
