🇳🇬 **Nigeria **— implementation of Virtual Assets Executive Order moves fast

12 August: CBN Cohort 2 Sandbox opens VASP track. Following the July Executive Order, the Central Bank of Nigeria officially launched Cohort 2 of its Regulatory Sandbox Programme, opening a dedicated track for Virtual Asset Service Providers (VASPs). The sandbox targets stablecoin issuers, crypto wallet providers, settlement platforms, and custody operators.

14 August: NRS issues Virtual Asset Tax Guidelines. Building on the Nigeria Tax Act reforms, the Nigeria Revenue Service (NRS) published operational guidelines detailing tax collection mechanisms for digital assets:

• 1% Withholding Tax at Source: Exchanges and custodial platforms operating in Nigeria are mandated to automatically deduct 1% of proceeds on taxable disposals and remit directly to the NRS.
• Income Tax Alignment: Gains for individuals are now taxed under personal income tax up to 25%, while corporate entities face the standard 30% corporate income tax.
• KYB/Tax ID Linkage: Exchanges must capture and validate Tax Identification Numbers (TIN) during client onboarding alongside standard BVN/NIN checks to meet transaction tax reporting duties.

🇿🇦** South Africa **— Directive 11 post-deadline enforcement Late August: FIC enforcement follow-ups begin. Following the 31 July filing deadline for the Directive 11 Risk and Compliance Return, the Financial Intelligence Centre (FIC) initiated compliance queries against accountable institutions that failed to submit. Institutions that submitted late or flagged high residual risk are being directed into automated audit queues.

🇲🇺 Mauritius 18 August: FSC issues stablecoin regulatory guidance. The Financial Services Commission (FSC) released supplemental guidance addressing stablecoin issuance and custody. The guidelines establish explicit reserve-backed requirements and mandate real-time transaction screening for stablecoin transfers originating from or terminating in foreign jurisdictions.

🌍 Regional & International 31 August: ESAAMLG meetings commence in Kigali (🇷🇼 Rwanda). The 52nd Task Force of Senior Officials and 26th Council of Ministers meeting opened in Rwanda under the regional anti-money laundering body. Key agenda items focus on assessing peer progress regarding FATF Immediate Outcomes and evaluating technical compliance across Eastern and Southern Africa.

Why It Matters for KYC August developments shifted the focus from policy announcements to active operational enforcement. The rapid execution of Nigeria's Virtual Assets Executive Order alongside Mauritius’s new stablecoin reserve directives, signals that cross-border crypto infrastructure is moving directly into tax and banking oversight.