VASPA unveils roadmap to integrate digital assets into Nigeria’s formal economy

The Virtual Asset Service Providers Association (VASPA) has unveiled a policy roadmap to integrate Nigeria’s digital asset market into the formal financial system, signalling a shift in how the industry engages with regulation, taxation, and foreign exchange management.

The framework, titled Project Green-White-Green, seeks to bring largely informal crypto activity under official oversight through coordinated rules, identity verification, and automated tax systems.

“This whitepaper is the culmination of meticulous legal, technical, and economic engineering,” said Favour Uche, project manager for Project Green-White-Green and star associate at Infusion Lawyers. “We didn’t just compile industry feedback, but articulated and aggregated them into the frameworks proposed, ensuring alignment with national interest. We are now fully prepared to take this blueprint to the highest levels of government. The groundwork is officially laid, and the execution phase begins now.”

The roadmap comes after years of tension between regulators and participants in the digital asset sector, during which restrictions in the banking system and concerns from security agencies pushed much of the activity outside formal structures.

VASPA said the absence of a defined framework has limited oversight and left a significant share of transactions outside taxable channels, creating gaps in revenue capture and market visibility.

Plan to connect digital asset activity to the formal economy through regulatory alignment and technology-driven compliance. The association proposes what it describes as “zero-friction automated taxation,” which would apply Value Added Tax (VAT) and Capital Gains Tax (CGT) at the point of transaction using application programming interfaces.

The framework also introduces a foreign exchange model aimed at reducing distortions linked to crypto trading. Under a “dynamic FX alignment” approach, VASPA proposes linking digital asset trading spreads to rates in the Nigerian Autonomous Foreign Exchange Market (NAFEM) to narrow gaps between official and informal markets without disrupting activity.

Regulatory fragmentation remains a major challenge for operators, according to the association. VASPA pointed to a “chicken-and-egg” situation where firms struggle to obtain licenses due to overlapping requirements from agencies such as the Securities and Exchange Commission Nigeria and the Corporate Affairs Commission. The document proposes a coordinated approach to resolve these bottlenecks and enable compliant participation.

To strengthen oversight, the roadmap recommends integration with the National Identity Management Commission, requiring users in the digital asset ecosystem to link transactions to verified identities. This, VASPA said, would improve traceability and support enforcement by relevant authorities.

Franklin Peters, executive chair of VASPA and chief executive officer of Boundlesspay, said the initiative reflects a shift in approach by industry players.

“We are no longer waiting for the future of finance to happen to Nigeria; we are architecting it,” he said. “One of our country-specific, practitioner-led projects for the constructive realignment of the virtual asset sector, Project Green-White-Green, is the definitive roadmap for any serious operator or investor who wants a stake in the next decade of our digital economy.”

To support adoption, the proposal includes a “Clean Slate” provision allowing operators who worked during earlier periods of regulatory uncertainty to enter the formal system without penalties tied to past activities.

VASPA also outlined a “Safe Harbor Pilot” to guide implementation, providing a transition window during which operators can comply with new requirements without immediate sanctions. The pilot includes a 24-month plan to onboard offshore exchanges as “digital residents,” requiring them to establish local presence, meet tax obligations, and support skills development.

The roadmap follows Nigeria’s exit from the Financial Action Task Force grey list in October 2025, which marked progress in strengthening financial oversight. VASPA said the framework builds on this development and offers a national structure for regulating digital assets.

The document is expected to be presented to key institutions, including the Central Bank, the Securities and Exchange Commission, and other financial and security agencies in Abuja, as discussions continue on how to integrate digital assets into Nigeria’s broader economic strategy.