CBN opens second regulatory sandbox cohort to VASPs, stablecoin startups and fintechs

The Central Bank of Nigeria (CBN) has opened applications for the second cohort of its Regulatory Sandbox Programme, officially inviting Virtual Asset Service Providers (VASPs), stablecoin startups, and data-driven fintechs to apply.

Founders who have spent years building products on the fringe of existing laws now have just three weeks to apply for a spot to test their products legally within Nigeria’s financial ecosystem. Applications for the cohort opened on August 12 and will close on August 31.

The second cohort of the apex bank’s Regulatory Sandbox Programme presents two main tracks: the Virtual Asset Service Provider (VASP) and the Data-Enabled Financial Services (Non-VASP). The VASP is built for companies working with virtual assets, stablecoins, payments, settlement, custody, wallets, and related financial infrastructure. These are products that handle real money in ways regulators have historically struggled to categorise.

The sandbox provides a controlled environment for testing these products under CBN oversight. On the other hand, the Non-VASP track is designed for innovations that use secure digital infrastructure and permission-based data sharing to boost financial inclusion, improve credit access, manage risk, and deliver better consumer outcomes.

When the CBN first launched its Regulatory Sandbox in December 2022, it received over 1,000 applications before closing the window in February 2023. That staggering number revealed how closely startups were watching, and how many were building products that had no legal place to land. This second cohort is a clear recalibration. By explicitly calling out VASPs and stablecoins, the CBN is admitting that digital assets are no longer a fringe curiosity in Nigeria.

They are central to how millions of people move money, save, and handle cross-border payments. By bringing these products into a supervised testing environment, the CBN is creating a formal channel for assessing how they fit within Nigeria’s regulatory framework.

For fintech and crypto founders, the sandbox offers something far more valuable than a controlled testing ground. It provides a direct line to the regulator at a time when regulatory clarity can significantly affect a company’s ability to operate and scale. Joining the cohort means operating under CBN oversight, but it also means building with the regulator’s visibility rather than fighting its uncertainty.

The CBN has stated that consumer protection, financial stability, and market integrity will remain top priorities throughout the testing period. What Nigerian founders do with the next three weeks will set the tone for the market’s future.

Read also: Digital payment fraud drops by 51% as Nigerian fintechs fight with AI – CBN report